Posted by: Roby Robertson | February 16, 2010

Lake Norman Foreclosures – Do Banks Negotiate?

It has been my experience that banks do negotiate.  I can tell you that unless it is an extreme case, they won’t even entertain low ball offers.  They are getting so much of these type of offers that I believe that they hit file 13 before a real decision maker even sees it.

Once the listing agent has priced the foreclosed home and the bank has agreed to the price, even the listing agent will sometimes be surprised.  I have been telling clients that if you get much below 10% of asking price, your probably not going to get the home. 

I have been told that banks use a pricing system that institute price reductions by a schedule. What this means that it might be worth watching properties and hoping they don’t sell out from under you. 

An extreme case where you can really undercut the home might be where there are significant problems with the home.  Just remember you are agreeing to purchase the home ‘as-is’ so the bank is not going to make any repairs.

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