Can we lowball a bank owned/REO Chandler home? In real estate, everything is negotiable. So the answer is yes, you can do that. But in this market, is that a wise decision? It depends. How badly do you want the property? Are you looking to live in the house or will it be an investment? How long has the home been on the market? What's the condition of the home?
We've found in this market, when an REO properties that are new on the market (30 days or less) the banks may be unwilling to negotiate on its asking price as it wants to get as much of what was owed on the original loan as possible. However, the longer it's been on the market, the more willing the lender is to negotiate. The banks are in business to lend money, not in the real estate business. So the longer they have the home as an asset on the books, the more motivated they will be to get rid of them, meaning they are more likely to negotiate on price and possibly may contribute to closing costs or provide down payment assistance.
We have also found that REO properties that are new to the market, good condition, and under the $250,000 range are getting multiple offers. Yes, multiple offers in this market! So, depending on how badly you want the home, you may not want to make a lowball offer.
REO homes typically will use the standard Arizona purchase contract, in addition, to their own contract. Keep in mind, their contract is NON-negotiable and most bank owned homes are being sold "as-is". Therefore, no matter what offer you make to the bank, we highly recommend that you hire a home inspector. Some things to keep in mind is that a lot of homes do not have the utilities turned on, so you as the buyer may have to pay for the expense of getting those turned on.
We can assist you in purchasing a home, Bank owned or not, in Chandler, Gilbert, Scottsdale, or any part of the Phoenix area.
Dora and Vincent Kwok
Your Arizona Real Estate Consultants for Life
 |
|
|
Providing the highest level of service. We establish strong bonds with our clients, not just as REALTORS ® , but as friends. Serving the Chandler, Arizona and Phoenix, Arizona Real estate markets
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2013 ActiveRain Corp. All Rights Reserved
