About Erik Gerth Expertise I am a licensed real estate agent since 1991. I have sold many HUD homes. I have even purchased them myself. I am familiar with all aspects of HUD procedures, contract forms, web site bidding, and FHA financing. Questions welcomed about property selection, pricing, and HUD procedures.
Question Could you give me a general guideline for making an initial offer on a fannie mae or freddie mac andthe counters i can expect Thank you
Answer Hi Cindy,
These are great questions.
What I recommend is that you get in touch with a Realtor in your area that either specializes or has experience with submitting offers on bank owned properties.
As far as making an offer is concerned, it really depends on the condition of the property. Many people just assume that bank owned properties for sale are a good deal. This is not always the case.
You want to evaluate the condition of the property (structural and cosmetic) and have your Realtor provide you with a Comparative Market Analysis that will show you what similar homes in the area have sold for in the last 6 months or so.
This will give you a good idea of what the home is worth. You can then make an educated decision on what you would like to offer for the home. You can then decide what your "bottom line" is on that particular home. If the bank wants more that that, just move on to another property.
Also realize that it may take some time to get answers processed when dealing with a bank versus a typical home seller. The paperwork processing can take longer at times. Keep in mind that the cleaner your offer is the better chance you have that it will be accepted. What I mean by this is that the less the bank has to do to the property before they sell it to you, the easier it will be to get your price.
Let me know if you need a recommendation for a top Realtor in your area. You can email me back at erikgerth@remax.net
