My Buyers who are interested especially Bank Owned/REO homes often ask “When putting an offer on a Bank Owned Home, do I have to offer more than asking price?”
This is a great question and most Buyers can’t comprehend why they should offer $100,000 for a house that is listed in MLS for $80,000. If your Realtor isn’t already doing these next steps, be sure to ask them to do so;
-Review recent Sold homes in the area that are similar to the one you wish to put an offer and see what they were listed at and what they actually Sold for
-Find out if there are any other offers on the house
My most current offer was on a house in Clermont FL, REO property in Spring Valley subdivision which was listed for $74,900 and it was on the market for 1 day. When I looked at recent Sold homes in the Spring Valley subdivision in Clermont FL, as well as currently Active homes for Sale, we clearly saw that the market value for the house was $95,000.
I then found out there were multiple offers. If this is the case, Buyer should present their Best and Final Offer. Anyone who’s been following the market and got beat up a few times and ended up one REJECTED offer after another would offer the fair value which is $95,000.
To most Buyers who are seriously looking to purchase a home, this may sound silly, a waste of time and just playing games..perhaps it is!!! When and who came up with this Best and Final offer anyway?? Answer is BANKS!! They’re simply telling the Buyers “Guess how much we will take for this house”
Well, if you GUESS correct the first time, you have a good chance of getting your offer accepted. Please be sure to consult a Realtor before you go on a wild goose chase trying to figure out how much that house is really worth.
“When putting an offer on a Bank Owned/REO house, should I offer more than list price?” If the market value is higher than asking price, most likely the answer is YES.
Originally posted: http://activerain.com/blogsview/3024204/when-putting-an-offer-on-a-bank-owned-home-do-i-have-to-offer-more-than-asking-price-