Hi --I have a question as to how much to offer on a bank owned home. It is listed for 115,000. 2 houses near it are worth 188 and 192 (according to Zillow.) The rest are in the 200's.

The house needs extensive work--- I want to get it as low as I possibly can because I want to pay cash.

I'd appreciate some suggested offers---how low would you go (cash offer)?

Thanks in advance---

Because it needs extensive work, I bet you could get it for $115,000.

"CASH" doesn't impress Banks much . . . . many are actually still in the business of loaning money.

Many prospective Purchasers think that if a property is priced to reflect the fact that it needs work, that they can still deduct the cost of those repairs from the already adjusted price . . . . not too often. So a dump that needs $80,000 in repairs and is priced at $50,000 ought to sell for -$30,000 ?

Still . . . . the worst thing they can say is NO! Good luck.

I wouldn't go by Zillow or for sale listings. What has SOLD recently in the last 30 days preferrably MINUS the repairs it needs will give you a ballpark.

I buy investment property and I am a broker.If you track foreclosures they fall into different categories.

If the property by repairs needs carpet and paint etc. then NO they will not discount usually more than 10 percent off the current listed price point.

If it needs extensive work where regular loans cannot be had then CASH is king because knowone else can purchase those and they will reduce the price considerably to move it.

Alot depends on how often they do price reductions.Some banks go down in price ever 2 weeks and others take 4 to 5 weeks and some reduce by 5 percent and others 10 percent plus. You need a broker who knows which banks are agressive in your area.

Why not work with a realtor?

He/She will know current market trends and will be able to provide you with solid numbers so you can make your offer based on these numbers (actual sold/listed comps, their condition, etc.)

The best part is that this realtor won't charge you.

zillow is crap. "two homes near it...according to zillow" That means nothing. Are they in the same sub? Where I live there is a 700,800,400,300,200,150 neighborhoods within a mile,mile 1/2 of each other. You need to know the trends in that area. Get a buyers agent. Its free....or take a gamble at doing yourself.

In dealing with a foreclosure the banks selling them are mainly concerned with price. You as the buyer need to determine what the right price is for you regardless of their asking price. This is where an experienced real estate agent can greatly improve your chances of not only getting the home, but also getting a better price and making it a smooth transaction. Your real estate professional should talk to the listing agent and try to find out how many offers if any the home has had and are there any current offers. Your agent should also be able to gather some info from the MLS such as how long has the home been on the market, when was their last price reduction and how much, any city required repairs, sale price of comparable style homes in the area over the last six months, what are the comparable homes listed at on the open market and what is the value of the property “as-is” and then if you as the buyer were to fix it up/ rehab the property after closing. The answers to these questions can educate you about the market and also give you an informed decision on what price you should offer.

While multiple offers are common to see on foreclosures there are a few strategies that can strengthen your offer. With the credit market tightening, a cash offer can beat out an offer that is contingent on getting financing. In fact, it’s common to see banks accept cash offers that are thousands of dollars less than an offer that is higher but is contingent on obtaining financing. Other helpful tips include: offer to close in 30 days or less, remove the inspection contingency, if you are financing do not ask for any seller paid closing costs and do not ask the bank to perform any repairs.

You are asking us a question that nobody on here can truly answer. Since I am a Realtor in the foreclosure capital, Las Vegas, I will give you some insight on making an offer on a foreclosure property.

Many consumers believe that just because a property is a foreclosure, the bank will always take less than the listed amount. This is not true. Before a bank puts their property on the market, they do multiple appraisals to figure the value of the property. They will typically use the lowest (liquidation) appraisal as the list price. This liquidation value is typically already under the fair market value. The strategy for this is to gain lots of interest from buyers and obtain multiple offers. This will drive the purchase price above the current list price in many cases. So if the current list price is already listed at 20% under value, people that think the bank will accept another 20% off the list price are completely wrong.

There are other factors involved of course, such as the length of time on the market, the condition (which is usually already factored into the price), etc.

So it really comes down to the fair market value of the property. This is why you should have a Realtor represent you with your purchase. They will be able to best advise you on what the comps are and if there are other offers that you would be competing against. Then you can make an educated decission on how much to offer. Do not use the list price to determine your offer, you may have to offer more in order to get the offer accepted!

If you would like a good Realtor in your area to help you with your purchase, let me know. I would be happy to refer you to someone that will help you through the entire process. Unfortunately, I am in Las Vegas, but I have great Realtor contacts in many areas around the country. Shoot me an email if you would like a Realtor at LenM@AmericanaGrp.com. Good luck to you.

It is good to know, what is listed, but more important to know is, what have been sold during the last three months, especially on this market. Cash is good and bank cares about cash, less contingency is better, but if your offer is much les than others with contingency, bank will reject yours. If the price tremendously under the market, and you have estimated price in repairs, you just mach the price or put 5 – 8% up, depending on your numbers.......