Good Offer?

Question

I am in the market for a home and I have come across one that I have fell in love with. It's a foreclosure that has been on the market since October of 2008. Below is the price history. 
06/25/2009 Price change $195,000 
02/08/2009 Price change $236,500 
01/07/2009 Price change $259,900 
12/04/2008 Price change $279,900 
11/02/2008 Price change $307,000

As you can see they dropped it again 6/25 to 195.000.  My question is...I am thinking of offering 130-140k. Am I being niave to think they will accept a offer that low? 33-35% off ?  It needs some work...but mostly cosmetic.  Carpet...paint....couple of kitchen cabinet doors need replacing.  Well thanks in advance for yall help.

Josh Green · Answer

ofcourse the listing agents commission is determined by the selling price. don't worry about what they 'think'.

Josh Green · Answer

they may not have had a scheduled reassessment, but a sale or a request would force one.

i'm interested to see what it went for. let us know when it hit public records.

Nathan Lacey · Answer

I'm not sure I want to know.  LOL.  I did come across another house that was foreclosed on.  Found it by searching public records and whatnot.  Only problem is the house isn't on MLS yet. I called around and finally found the listing agent. Who was suprised I was able to track them down and find out they were getting the listing.  Well anyway...she is still waiting to get price back  from the bank.  She met me and let me in and it needs some work and she is expecting it to come in anywhere from 140k-160k.  So i'm going to wait and see what the bank comes back with and go from there. Wish me luck guys..and gals.

Nathan Lacey · Answer

Someone beat me to it.  :o(  The guy I was speaking with wasn't the actual listing agent. They were partners and his partner had already presented a offer that got accepted right before I was about to put mines in.  Oh well.  Not to wish anything bad on someone elses blessing. LOL but if it falls out of contract I'll be there waiting.  I'm thinking there is probably a good chance that it may.  The property taxes are 5,600 bucks...and he was saying the county wasn't going to reasses the property until next year.  So..thats a lot to escrow each month.

Vadim Sozkil · Answer

Think about this... The price dropped almost 40% since it was first listed. Go for it!

Jon Holdman · Answer

You have nothing to lose with an offer.  Nobody's going to be insulted or anything, as if you should even worry about that.

I don't think they will accept the offer, though.  A few posters say they have had lowball offers accepted, but banks usually won't come off their current listed price very much.  But this one has been on the market for a long while.

If they say no, or counter at 190 or some such, wait until the drop the price again, then resubmit.  Be quick, because when it hits the "good deal" price, it will get snapped up.

Make it clear to the listing agent what you will pay.  If he's not getting any action, he might call you the day or so before a price drop.

Stephani Davis · Answer

I agree with Josh- make the offer!

Who gives a crap what the agent thinks.  It's your money, not theirs.

Most REO agents are used to getting low-ball offers, and to be honest with you, offering 130-140k on that house is not that crazy of an offer, especially since it's been sitting around for 8 months.

The worst that can happen is that they say no.  In that case, wait another 30 days and resubmit your offer.

Good luck,
Steph

Josh Green · Answer

submit the offer. its an offer you are comfortable with. they may just take it! good luck!

Nathan Lacey · Answer

Yeah I'm in good shape (atleast I think so).  Pre-approved with two banks. Steady job, 30k downpayment, 6 months reserves.  I just hear all these REO tales and was just wondering if I was setting myself up for a letdown.  I mean October and no bites....seems like they would jump on my offer. LOL ofcourse I'm biased though.

Josh Green · Answer

based on some of the phrases you used: 'in the market for a home', 'fell in love with' it appears you are talking about a house that you will occupy...

what are comparable homes selling for in the area?
those are some pretty big price drops which leads me to believe that the market is driving it down from no interest.

the way that i see it, if you 'love' the house. it really doesn't matter what we say. go for it and offer 130k. the worse they say is nothing....

Good Offer?

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