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How to find the Lowball price of any bank owned property?

I am searching some properties and was looking at some foreclosures and bank owned properties. Before bidding I wanted to know how to find a lowball price for the property. 1) what factors can I take into considerations with which I can bid my offer ? 2) how does a bank determine what offers they can accept? 3) Is there a way we can talk to the bank directly and find the price what they are looking for the home, this will help us either decide whether we can get that property or not. Rather than waiting for 2-3 months and at the end we are rejected.

Public Comments

1. The only factor you can use to determine an offering price is current market value of the property, in its existing condition. The lender already knows what that market value is, since it has paid a real estate firm for a "Broker Price Opinion' for that property. The lender will only consider a price reasonably close to the market value, unless the property has been on the market for quite some time with no successful offers. Normally, lenders regularly lower such asking prices as time goes on. Over 95% of bank owned properties are listed with real estate agencies for disposition, and the lenders don't talk directly with prospective buyers. That's why they hire real estate agencies. You won't ever get information from anyone on the 'lowest offer a bank will accept'. You can only judge for yourself what you are willing to pay, and then tender an offer accordingly. Neither will you need to wait two or three months for any response. If the bank owns the property, it will respond within a reasonable time frame. The lengthy times to which you refer occur in short sales, where the owner is not the bank, but the bank must approve or deny offers.
2. I fully agree with the earlier response.... I am a realtor and have dealt with over 25 bank owned properties in the last couple of months. There is no set formula on what the bank will take. Couple of my offers that got accepted were with 95% of the asking price. But at the same time, on one property I offered 5K over the asking price and bank still didn't except it. Banks look at a lot of other factors besides just the offer price... specially LTV ratio, closing date and most importantly they prefer people with 100% cash offers. Oh and in most cases they respond with 1 - 3 days. Good luck. PS: I am in South Florida market, if that is more regional thing.