How negotiable are listing prices on homes? We are actually looking at a home that has been foreclosed on. I have never done this before and need all the tips I can get. Please help so I look like I know what I'm doing!! Thanks!

Real, for example the last foreclosure I bought from the bank, they had the property for 4 years and had not sold it, I offered them about 65 cents on the dollar and bought the house.
But most mortgage companies will be wanting as much for the house as they can get, The thing is , you make low offers, see if they counter and set limits you won't go over. Also go to the court house and find out what the old mortgage was that they foreclosed on. Sadly with a lot of 100 percent and even 120 percent mortages, often a bank is owed 200,000 on a 180,000 home, but if you find lets say a 200,000 home where the bank was only owed 100,000 when they foreclosed, they may deal more

Any prices outside a retail setup are negotiable. There is nothing wrong in making a lowball offer to gauge interest. If they laugh at you, you know you will have to go a lot higher. ;)

Thank you Chuck, as I said, we need all the help we can get. THey are asking $173,500, so are you saying offer 65% of that to start?

No. You have to gauge what the house is worth depending on the market. Chuck just used 65% as an example. You need to do your homework and check appraisals and recent sales in the area. Then look at the condition of the property. From there you can decide what a reasonable value is to you (for example are you buying to live in, or are you looking to flip?).

Once you figure out what the house is worth to you, you can then make an offer. If you want to lowball it, make your initial offer between 50-60%. If you are serious then I would start at at least 75%. But that's of what YOU think its worth, not their asking price.

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Originally Posted by ScottGem

No. You have to gauge what the house is worth depending on the market. Chuck just used 65% as an example. You need to do your homework and check appraisals and recent sales in the area. then look at the condition of the property. From there you can decide what a reasonable value is to you (for example are you buying to live in, or are you looking to flip?).

Once you figure out what the house is worth to you, you can then make an offer. If you want to lowball it, make your initial offer between 50-60%. If you are serious then I would start at at least 75%. But that's of what YOU think its worth, not their asking price.

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Thanks Scott, that is very helpful...

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Originally Posted by ScottGem

No. You have to gauge what the house is worth depending on the market. Chuck just used 65% as an example. You need to do your homework and check appraisals and recent sales in the area. then look at the condition of the property. From there you can decide what a reasonable value is to you (for example are you buying to live in, or are you looking to flip?).

Once you figure out what the house is worth to you, you can then make an offer. If you want to lowball it, make your initial offer between 50-60%. If you are serious then I would start at at least 75%. But that's of what YOU think its worth, not their asking price.

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OK Scott, we do plan to live in it. The appraisal value and market value is showing $147,390.

And they are asking $175K on a foreclosure? I suspect the house was overmortgaged in that case. Its possible it was financed at the height of the market and its value has dipped below the financing. This doesn't bode well for you.

I would start by offering around $130K, but if its like I suspect, expect to have to pay much closer to their asking.

Quote:

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Originally Posted by ScottGem

And they are asking $175K on a foreclosure? I suspect the house was overmortgaged in that case. Its possible it was financed at the height of the market and its value has dipped below the financing. This doesn't bode well for you.

I would start by offering around $130K, but if its like I suspect, expect to have to pay much closer to their asking.

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You're a doll! If you think of anything else let me know. I'm going to peek in the windows and check out the property tonight. I may get w/ the agent over the weekend, which means I may be getting back to you about Monday. Hhahaha! Thanks!

Good luck