Downtown Chicago

A Home Path property is a bank owned property that is currently
owned by Fannie Mae. These properties have already went through the
foreclosure process. Now they are back on the market for sale.
In some Chicago neighborhoods, the Home Path properties are a significant
portion of the local real estate market.

But, I am starting to feel like getting a Home Path offer accepted is
like winning the lottery. I have submitted several offers for various
clients over the last few years. Guess how many offers were accepted?
ZERO!

And to make matters worse, you have to complete twice as much paperwork for
a Home Path offer. So it is pretty disappointing when you get the email
that says “we have received multiple offers…blah blah blah”.
So I decided to analyze the asking price vs. selling price for Fannie Mae properties.

This analysis is based on Fannie Mae properties that were sold in Chicago for
the three month period ending March 23, 2013.

During this 3 month period, 427 properties were sold.
The selling prices ranged from $2,900 all the way up to $429,000.
Here is the biggest revelation:
The median accepted offer was 99% of asking price.
So basically the average accepted offer was an offer for full asking price.
Almost half of all accepted offers were MORE THAN ASKING PRICE!

So, this is the problem. Many buyers are conditioned to offer less than asking price.
Well apparently that strategy is not going to work with Fannie Mae.
The real estate market has changed. It is not 2009 anymore. There are multiple buyers
out there and the competition for properties is really picking up.

So, in conclusion, if you are placing an offer on a property owned by Fannie Mae,
be prepared for multiple offers. And if you want to have a chance, offer asking price!
And if you really want the property, offer a couple grand over asking price.

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd.
Chicago, IL 60607
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com