Hellobee Boards

I've never actually bought a foreclosure but have researched the process a bit. One of the problems with a foreclosure is that often there is no negotiating process. You sort of get a one time shot with the bank to make an offer and they take it or leave it. So if you will be devestated if you don't get this house, then yes, I would go ahead and make an offer pretty close to asking if not at asking price. If you won't be super upset to lose it, make a low offer and try your luck. Just be sure you have an iron clad contingency in the offer that the sale is dependant on a satisfactory (as determined by you) inspection. Because foreclosures are sold as is so even if you find issues with the home, the bank won't fix them... so you want to be able to walk away without harm if the inspection uncovers serious problems.

Our house was a foreclosure. It sat on the market for a year before we made the offer on it. It was only a few years old, and it was in great shape (the previous owners didn't tear it up before they left - yay!). It did take a while to hear back from the bank (a month), but it was well worth it. We ended up with an almost brand-new house for about 20% less than market value.

I would say to go for it if you really love the house. But be prepared to walk away or fix any problems yourself that the inspection finds. Also know that it could take a while to hear back from the bank, so be prepared to wait a little while.

I would go under what the list price is. What's the worst they can say? No? Then you can go back with another offer if you really want to. I don't know anything about your realtor, but it sounds like they're wanting to push you to go higher because it increases their profit.... that may not be the case, but that's the first thing that went in my head.

Good luck!

Our house was a short sale, so a bit different than a foreclosure. From my understanding the banks pull that stuff with the prices to get more interest.