How flexible is Fannie Mae HomePath on pricing?

Question

Julia Dugger · Answer

So, something to keep in mind when considering offers is that asset managers are considered successful by their employers when they sell a property quickly at or above value. Of course, those both those things aren't always possible which is why you'll sometimes see price reductions at regularly scheduled intervals but that is somewhat dependent on the number of previous offers, showing history, repairs, etc. It is not at all true that Fannie Mae doesn't sell to investors -- a very significant chunk of properties are sold to investors -- but it is true that they have a preference for owner occupants. So, if two offers are equally good, the owner occ will generally win. And, of course, the FirstLook period supports this preference as well. But, regardless of whether you are an owner occupant or an investor, if you're not helping the asset manager get close to the numbers he or she needs to hit, it's tough to have a property offer accepted. So while it's absolutely possible to get a "deal" from Fannie Mae, you'll almost never get a "steal".

Carrie Giordano · Answer

@Russell Brazil @Sarah Ziehr thanks for the info. It is interesting how vastly different areas can be!

Russell Brazil · Answer

Homepath has a first look period for owner occupants. After the expiration of the first look period bidding to investors is open. As far as how much of a discount they will take, that is usually up to the specific asset manager. Some of them are firm on price, some are very flexible. In my experience Homepath, like any other REO will never make repairs to a property after it is listed. However before it is listed, Homepath homes in my county are all painted and new carpet is put in each. The next county to the east they did not do that. I have no idea as to why that is the case.

Sarah Ziehr · Answer

They are pretty firm on price, and unless you are buying it to live in, don't bother. Homepath will not sell to an investor in my experience.

I've written enough offers to know. :)