Property on market 6 mos and bank owned would like to low ball by 100,000, would that be acceptable? |
Banks are usually insured up to 20% of their loans. So if you can come up with no contengencies and what you're offerring is 70%-80% of what is owed, even though it is under market value, you might have a shot.
Regards
I would make my offer to the bank with pictures showing the necessary repairs needed both in and out, also send them a check for at least10% of your price you want to purchase the property for this will show extreme interest.
I would indicate this is a full cash offer and the properrty to be sold as is with a # of days to arrange proper financing.
I would send a letter along outlining the cost to repair the building and if I could the estimate of a construction person on his/her letterhead. You should get at least 3 normally, estimates are free.
Of course once and if you purchase the place find you some good handy men to actually do the work.
If it was me I would find out the loan that the bank has on the property and make an offer to take over the existing loan or that the loan amount become the sale price. This is in all probability what they would have gotten at the sale, but didn't.
If you get a couner you don't have to accept it just counter back with your original offer.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Acceptable to whom?
It really depends on the bank and their financial position. Banks currently own a ton of property (especially in Michigan) and they are being sold at auction all over the place. The bank usually loses its butt in an auction.
All you are doing is making a business offer to the bank, give it a shot, in writing, and see what happens. They may ignore it, they may reject it, or they might even counter offer you.
You'll never know unless you try. Good luck.
It's always acceptable to low ball--however, realize that if you go too low you will be viewed as a misfit that isn't serious about buying so have some basis for your low bid--obviously when a property is on the market for 6 mths it's over priced
Good Luck!
Over the years , under just the right circumstances, I've heard of some pretty amazingly outrageous offers being accepted - even by private owners . You'll never know unless you try . What's the worst that can happen !?
Go for it. It's not priced at $110,000, is it?
If it's priced at about 12 million dollars, your offer may be too high - start lower. Knock off at least 2 million.
This really depends on what the home is actually worth. If it's worth $500K, then your low ball probably won't work. If it's worth $300K, it's possible. Can't hurt to try, though.
Just do it! and best of luck!
You can't insult a bank. Go for it. The worst they can say is "No". And we have all heard that at some point in our lives. They can't draft you and they can't send yoy to Viet Nam.
You'll have to tender a formal offer with earnest money to find out! Nobody here could POSSIBLY give you any other answer!
I doubt it, but one never knows--it is an interesting market.