Finance Q&A

Bought a VA acquired repo home?

Q. Bought a VA acquired repo home? I am looking at a vacant VA repo home and am wondering.how much lower to the VA asking price one can offer and still be considered a reasonable offer. Or must the offer be at the asking price or above to hold a chance of being accepted.

A. - It all really depends on the market in the area you're looking in. In my neck of the woods, some properties sell at a premium to the asking price. Most sell for the asking price and a few get sold after the price has been lowered a few times. My strategy: Don't worry about what the VA thinks is reasonable. Offer what makes sense to YOU. The worst that can happen from a low offer is that they'll say "no". The upside is that they might accept the offer at YOUR price. If someone else gets it, move on to the next opportunity - you stated that you are wanting a foreclosed home for a discount... I am finding IN JEW JERSEY that once the bidding is done the person that got the house ended up paying what an average market value of the property. THERE WAS NO DISCOUNT!! please be careful. if you are entering in to the negotiation to safe money. AS I tell all my clients "the price you need to offer is what it is worth to you!! Give as much as you can, and If you loose the deal you tried your best." - Your offer depends a lot on condition and time on market. 80% used to be a pretty good offer, but things have tightened up, especially if the property is priced well to start with. Offers below 80% were not really considered before that. There is usually someone around willing to offer 100% or close to it now days, if the property is priced ok, and they usually are.