Replies to This Discussion

Permalink Reply by Steele V. Propp on March 25, 2010 at 12:14pm

That sounds about right for an average. Of course, most of the time it will not be an appraisal that determines value but rather a BPO. With a number of these banks the discount off value can also depend on time on market. The first week or two they might not consider an offer under 90% (example only).

You generally don't know until you get into negotiations.

Permalink Reply by Juan Reyes on March 25, 2010 at 12:26pm

It is difficult to state accurately. I think it also depend on investor guidelines as well.

I had a deal where I listed the property at $225K it's market value, I received and offer for $190K all cash. The BPO came in at $228K so BOA countered back at $228K, the buyers re-countered at $215K about 6% below BPO value and BOA accepted it.

Would they have accepted it at $210 or $205K? Who knows, but the buyers wanted it and did not want to take any chances and figured that if they were financing the buyer would most likely ask for 3% closing help and that would put the bank's net at about $220 so for them $5K difference was not worth losing the buyer.