How much should I offer on this Foreclosure/Bank Owned Home?

Question

The house was built in 2000, was sold in 2002 for $144k and is now listed at $132k. The bank took ownership of the home in October of 2007 so they have been holding onto for a long time. It is owned by Wells Fargo. Comps in the area are ranging from $130-$160. What should I offer and what should I expect to pay for the home? It is located in Rockford Michigan which is north of Grand Rapids.

Answer 1

You need to offer somewhere around fair market value, and you can only determine that by engaging a qualified buyer representative real estate agent, who can provide you with written evidence of recent comparable sales values.

You need to understand that the bank ALSO knows these values, since the listing agent has provided the bank with same.  If the bank is led to believe that it is worth more than your offer, your offer will be declined.  Get the necessary information and move forward accordingly.

Answer 2

You need to make your best offer. If this is the one you really want.  Most do not understand that the banks hold up offers until they can say they have multiple offers, forcing anyone bidding to increase their bid. It's not right, nor can I prove it. But my gut tells me when you keep losing bids, what else can it be?  So make your best offer.

Answer 3

After bidding on several bank owned house this year, I learned- you can bid what you want but banks are pretty smart and know what the property is worth.  Sometimes they won't back down but they should counter offer if they don't like your bid!  And if they don't counter offer they will tell you we can't take less then 132 at this time.  They try to get the far market price if the home is in good shape- if the house is in bad shape, they might come down.

Answer 4

Offer as much as it's worth to you.  Have your broker research the comps, as it appears you've done.  If you're not emotionally attached to it, offer what you want.  If this is the house you really want, offer what you think it'll take to have your offer accepted.  Cheers!