Hey All,

I have a client who wants a bank owned home & here are the details:

List Price: 139,900.

Condition: needs approx 20K in repairs. The house if fixed would list at approx. 185K.

The listing agent says make an offer and the bank will counter with addendum.

Is that normal for a bank owned property?

Is what normal? The apparent heavy discount between the value "as repaired" and the list price as is or that the bank will counter offers or that the bank has addendums?

I have found that some banks will counter and some won't. All have an addendum that they will require the buyer to sign.

This sounds with in my normal experience. How many days on market and what bank is selling it are my other considerations.

The addendum counter is very normal. You will find it to be between 3 and about 17 pages long and it is basically a disclaimer that they have no knowledge of the property and the terms and conditions of the sale which generally include using the banks selected closing agency (or you pay for closing), inspection rights and time frame, and wording on how your also promising your first born if you fail to close.... all rather boring but some lawyer wanted to kill a few trees so they put about everything possible into the addenda as a CYA.

Read it but don't bother about asking for changes.... no one you can talk to will have the authority to alter the addenda... it is almost always a take it or leave it.

I have been doing REO's for some time and never actually had any problems develop over the addenda with the dozen or so Asset Management Companies / Lenders I work with.... either as the Sellers or Seller & Buyers representative.

Make the offer and see what happens.

If they counter your buyer does not have to accept it; he or she can always make another offer if they choose to do so.

Addendums are typical for most REO, corporate, and relo properties; read them very carefully.

I forgot to mention that the property has been on the market for 368 days as of today.

Anyway, thank you all for the advice. I will read over the addendums very carefully and have my buyer do the same.

368 days , wow