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by Jace Stolfo
on Wednesday, May 4th, 2011 at 8:29am.
I often get asked, “what kind of discount can I expect off a bank-owned home?” My answer is often… “it depends.” Most significantly, it depends on how long the property has been on the market and when they last reduced the price.
The reality is most Boise bank-owned homes (REOs) get offers shortly after coming on the market or after a price reduction (which are often substantial). As a result, most REO properties sell for full price or more.
In the last month there have been 126 bank-owned sales in Boise. Of these, nearly 36% sold for more than asking price and 31% sold for full price. In other words, nearly 67% of the most recent bank-owned sales sold for full price or more. For these 126 sales, the sold price actually averaged 1% over asking price.
However, in the right scenario, discounts can be obtained. About 21% of the sales had up to a 5% discount while 11+/-% of the sales had a 5%-15% discount. As previously mentioned, this usually has most to do with how long it has been on the market and time-frame since their last price reduction. Other factors include overall price point, if the property financeable, cash or financed offer, competing buyers, known defects, and have they had previous contracts fall as a result of the condition of property.
An experienced real estate broker can help you evaluate properties case-by-case to determine an offer strategy. You can sign up for a list of Boise Bank-Owned Homes and learn more about Bank-Owned Property here.
Below you can see a graph that shows you these numbers for these 126 sales.