Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
I had an offer in on a fannie mae home for about 20% below list. I didn't expect them to accept, but was hoping they'd counter. They rejected my offer. I've learned from the agent that no offers have been received yet. None during their first look and now we're about a week into the investor period with no other offers.
It's a cool house, but with the amount of work needed, it is not worth what they have it listed for, in my opinion.
Is it even worthwhile to increase my offer slightly or do I just need to wait for them to drop the price? Any guesses on how long they'll wait before dropping the price, if there are no other offers?
Is the lack of other offers simply due to other investors knowing that it's not worthwhile to put in low offers on fannie properties, prior to a price drop?
I've heard they'll deal somewhere around 17% of list. I'd offer again until I got them engaged (assuming the deal is still working). The offers will increase when the price drops so get ahead of that.
Second piece of advice is they seem to wait 45 days before lowering price. You might offer every two weeks for the same price or with slight modifications to get ahead of the price drop being announced.
I've heard they'll deal somewhere around 17% of list. I'd offer again until I got them engaged (assuming the deal is still working). The offers will increase when the price drops so get ahead of that.
Second piece of advice is they seem to wait 45 days before lowering price. You might offer every two weeks for the same price or with slight modifications to get ahead of the price drop being announced.
One of my investors put in an offer and after a couple of counters, he was at 25% below asking and they were at 16% below asking. The buyer would not budge, so Fannie rejected the offer. The house was still on the market 1.5 weeks later and the buyer decided he would go for the last offer Fannie made. But just for laughs we resubmitted his offer at 25% below asking price and they just accepted it, no counters. So don't get emotionally attached and play the game.
My agent indicated that it is pretty painless to resubmit for homepath. I'll report back in a few weeks to see if he still feels that way.
Thanks for all the feedback thus far. We came up a bit and resubmitted today. I'll update the thread occasionally and certainly when the property reaches a deal with someone.
I downloaded all of the 2013 foreclosures for my county from MLS and there were over 100 FNMA foreclosures sold with an average discount to current list price of 11.5%. I accounted for any seller contributions to buyers closing cost but did not account for commissions. Only 2 sold above list price and the greatest discount to LP was over 50%. There was correlation to days on market, the longer on market the larger the discount as would be expected.