Bank owned properties - how much can I negotiate?

[Sesha Bhojanapalli]

Hi everyone

My realtor sent me a bank owned property. I did the comp analysis and found that the property was still listed over the comps in the area.

1) Can I negotiate the bank owned properties and what would be a good ball park negotiation with the banks?

2) If I am able to pay full cash would banks agree to be able to negotiate further?

May be weird and hypothetical questions, but I want to make sure I am putting my best foot forward when I put the offer.

Thanks

[Evan Polaski]

@Sesha Bhojanapalli, yes you can negotiate.  But I would go in with the price that makes sense for the deal.  I am not a fan of haggling things.  Just like the broader market, you are not going to get through with a super low offer, and in my experience with bank owned properties, they will either accept or decline your offer.  There is little back and forth.  You offer and they say yes or no.  

Having clean terms: cash, no inspection, short close, all have a value.  But again, you are dealing with a bank that likely does not have the same motives as a person.  

When I was buying bank properties, I would always go in with my strongest offer that made sense and that was that.  For me, that meant cash with no contingencies, 10 day or as soon as title clears close, and at the best price I could.  I got several deals this way, and a lost many.  But knowing I came in strong, I didn't care that I lost any.

And as Jared mentions, just like a house listed directly by an owner, if it is sitting, you can send another offer, or the same one again.  Eventually, the bank has to get the property off their books, they do not want to be landlords, but at the same point, they are not going to sell for well below list on day one.