How much should I offer the bank?
Answer: "Typically - at least asking."
In September 2009, there were 433 single family home sales in Naples FL. The average sales price as a percentage of list price was 94%. Of the 387 Naples FL condos that sold in September 2009, on average, they sold for 93% of list price. However, of the 149 REO bank owned foreclosures that sold during the same period of time, the average closed sale price was 102% of list price. In other words, most properties went for about 93% of what the sellers listed the home or condo for, but bank owned foreclosures sold, on average, for more than what the banks listed the properties for.
There are many things that contribute to this, and I don't wish to list them here. I tend to err on the side of caution when submitting an offer to the bank, all the while knowing other REOs will come along that meet you specific search criteria. This being said, I don't advise an inappropriately low offer either. Banks would rather relist the property at a lowered price and regenerate interest in the property to try to garner additional offers, as opposed to taking a low offer from one buyer.
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