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by Jace Stolfo
on Friday, December 19th, 2008 at 4:54pm.
Have you wondered how much you can negotiate off Boise bank foreclosures (REO's)? Well, the truth is it depends. The major factors are location, price range, day's on market, terms and conditions of the offer, and the bank. As you will see, there's a range of how much the banks will negotiate and not all situtations are the same. If you're looking at a specific REO and would like to know my opinion I would be happy to talk with you.
For this blog, I complied the Boise bank-foreclosure sales from October 1, 2008 through November 30, 2008.
The most negotiated off the asking price was 22% while several sold for over the asking price. The average percentage was 4% and the median 3%. Please keep in mind, that most of these sales also had the bank paying closing costs which may not be relected in these numbers (typically $4,000 to $6,000).
I specialize helping buyer's with REO and short sale real estate, if you want an aggressive negotiator on your side, I can help.
Because bank's often price homes well from the beginning, 58% of these REO's sold before any price reduction. The chart below shows how much the bank had reduced the price, from the original price, before receiving an offer. As you can see, generally the bank does not begin reducing the price until about after 4 weeks.
You can see, there's some correlation between the percent negotiated and how long the property has been on the market. However, likely not as much as you would expect. This is because most REO's get more and more aggressive with the pricing as the home sits on the market. If the bank justlowered the price, they may not negotiate as large of a percentage off.
There's a much stronger correlation between how long the property had been on the market and what it ultimately sold for.
These real estate statistics are for single family homes in Boise Idaho.
Data Source: Boise MLS (Intermountain MLS). The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. This information contained in this post is for general market analysis. No representations or warranties are made as to the past or future appreciation or depreciation of property values.