How Much Should I Offer the Bank?

How much should I offer the bank?

Since I find more buyers property than any other agent acting as a buyers agent selling Naples real estate, and a good amount of these transactions have been REO bank owned Naples homes for sale, I am often asked, “How much should I offer the bank?” Everyone is an expert when buying property from John and Jane Doe down the street, but everyone is clueless when the seller is a bank. With the flood of Naples FL REO foreclosures (Real Estate Owned) properties in southwest Florida, buyers are anxious to get their hands on a great deal. It’s probably a popular topic of conversation at dinner parties and cocktail hours amongst northern and foreign investors. It’s the popular chatter at the water color. Everyone brother-in-law’s, sister’s, husband’s, cousin bought a foreclosure and got a great deal. Most mainstream publications or local news channel have sent a reporter into a foreclosed home to report on the squatting, stripping of copper and absence of appliances. It’s an interesting story that captures a buyer’s attention. However, the most interesting draw is obviously price.

Countless phone calls and emails ask my most FAQ: How much should I offer the bank?

My answer is mostly, “At least asking”. Here is why I answer this way: In September 2009, there were 433 closed Naples single family home sales and 387 closed Naples condo sales. The Average Sales Price as a Percentage of List Price (sales$/list$) was 93%. This means the final closed price paid was, on average, 93% of what the property was listed for. There are many things that contribute to this percentage, ie. sellers initial over-pricing, seller concessions, required repairs, lowered prices since listing date, etc. Conversely, of the 149 total closed Naples foreclosure sales in September 2009, the Average Sales Price as a Percentage of List Price (sales$/list$) was 102%. This means, on average, the final closed sale price exceeded asking.

I take many things into consideration when advising on offer amounts. There is a lot to learn, whether your buying a foreclosure or regular private resale. If your interested in purchasing a home or condo in southwest Florida, contact me and we can sit down to discuss your Naples FL home search.

Tim Ryan, info@naplesguru.com

http://www.naplesguru.com - Naples Real Estate, MLS Search, Community Profiles with Video Tours

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