Anyone have any experience making offers to Fannie Mae on their Home Path program? I was wondering if I could make an offer slightly below their ask price to give me some wiggle room for replacing the HVAC at the property.
Make whatever offer you want. Whether they accept it is based off how long the property has sat.
You can offer up to 85% of the list price with Fannie Mae and they will play ball with you. Sometimes it can drop to 80% but anything lower and they'll automatically reject you. I offer on about 50 fannie mae homes a month. They suck to deal with.
Hey Presley. You can definitely offer below the asking price. Especially if it's been listed for a while and you are the only interested buyer. I normally subtract 10% for every month it's been listed.
@Christian Marin Christian, are the homes you are bidding on only in Florida? Do you think this 80/85% rule applies to all states across the board?
I've gotten offers accepted in in the 85% range..but only after it has had at least one price drop and have been sitting for a while. BTW, I've had them make repairs too, even for an investor. It was not a smooth process though, to say the least. Still...a good one can definitely be worth the effort!
Investors can't make offers for 20 days at first (I think, it used to be 15). After that, make whatever offer you want. Sometimes they will come down, sometimes they won't. They do go highest and best unlike HUD when there is more than one offer. They do no repairs and always sell as is. Plus with cash offers, they demand 10% down, which isn't particularly fun.
I'm only offering in the central florida area but I believe it should be the same throughout the country. If your area hasn't recovered as quickly and still has foreclosures I'm sure they will take an even lower offer.
Everything above is correct. I was told by my realtor when making offers early they won't accept anything less than 90% of asking. @Christian Marin they did play ball with me even though I bid 70% of asking but they were almost to the tee with a counter at 90% of asking and then after that I decided to wait and watch for a while.
Update! I walk the property yesterday. It is in worse condition than the pictures showed. It is a total rehab. Fannie Mae sold it, then that fell through so it is back on the market. There is no money to be made at their asking price, so I will have to get a contractor in to estimate the cost of bringing it back to rent or selling condition. I believe it might be worth the time to get an estimate, and make them an offer. If it is below what they want, they are welcome to keep it.
This is why I don't do short sales. Banks can be incredibly unrealistic in trying to recoup their loses.
I'm under contract on a fourplex with Fannie Mae right now. They sometimes offer really good deals but they can be very difficult to deal with. That said, some of my best deals have been on foreclosures where the seller was difficult to deal with. It actually saved me $15k on the house I live in because the bank scared off the other offers.
Good for you Matt! I wished I had house-hacked like you did thirty years ago. I have a fourplex in Texas that performs really well. I bet that property will do well for you.
Have had mixed results. Best buys are bank owned properties that have been sitting around forever. I will usually Low ball them big (can you really insult a "bank"?)
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