Michigan Real Estate-Southeastern Region-Keller Williams

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Foreclosure Market Secrets

Are the banks willing to negotiate?

I am often asked the question, "Are the banks willing to negotiate on price?"  So many things come in to play, here.  Some of them are:

1.  Condition of the house

2.  Location of the house

3.  Are there other offers on the house

4.  The listing price of the house

5.  The type of financing, ie:  FHA, Conventional, Cash, and if they have to help with concessions

6.  How long the house has been on the market

7.  The area comparable sales

I recently did some research for a client who asked the same question.  I was able to get the sold information for her on some of the houses she had inquired about in the past.  Here is a picture of the house, the listing price and sold price are next to the picture:

28141584    Click photograph to view all available photographs   Listed at $229,900
                                                                                                      Sold at $320,000
29032230   Click photograph to view all available photographsListed for $269,900
                                                                                                  Sold for $240,000 cash
29077526   Click photograph to view all available photographs Listed $272,700
                                                                                                   Sold $ 257,500
29074503   Click photograph to view all available photographs  Listed $235,000
                                                                                                    Sold $270,000
Well, you can see that there is no way to predict what a property will sell for by these results.  The advice I always give clients is the same:  based on the market, you bid the highest amount you feel you are willing to pay, and if you lose the bid by $500, feel alright that you lost it because someone else overpaid.

Published Wednesday, September 02, 2009 10:27 AM by Debby Poronto

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