Bank Owned Offers
Posted at 7:11 AM, Oct. 15, 2009
Just wondering how some buyers and some agents do not understand that Bank Owned Properties are priced below the market taking into consideration that the condition has been addressed when the price is determined. Fact is that not only do I do a BPO but in most cases other agents do BPO's and the bank does an actual appraisal to determine the price. But buyers still insist on making offers $20,000 and more below the asking price, even though the asking price is already 20% to 30% below retail value in move in condition. In addition these buyers want 6% in closing costs… So if they offer $100,000 and ask for 6% in closing costs and pre-paid items… so the offer is actually $94,000. This is on a home that is on the market for $120,000. Therefore they are asking the Bank to give up $26,000 from their asking price. Not to mention that the bank has already spent most likely $35,000 plus in foreclosure costs and also paid any other liens, back taxes and HOA fees plus the everyday carrying cost of keeping the lawn maintenance up ect... Every time I get a low ball offer I have to go on line and submit it only to have the Bank either reject it out right or counter is at full list price or close to it. What a waste of time on everyone's part. Yes, I submit every offer until the Bank accepts a contract… sometimes over 20 offers on one property. Sorry just venting after receiving an offer on a property that I just reduced the price from $200,900 to $194,900 for the grand total of $135,000… let's see… that is $59,900 below asking price. Oh well I submitted it. It was rejected.
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