I am curious to know how low I can offer for a Fannie Mae owned home?

[lifton]

My husband and I are starting the home buying proccess and are needing a few pointers on what we should offer for a Fannie Mae owned property. The home has been on the market for about a year. About a month ago, price dropped from around 125k to 114k. This home was built in '88, needs some TLC but in overall good condition and in a GREAT neighborhood. My sis in-law is our real estate agent and suggests offering 100K. Which I am ok with, but was wondering if we might could offer lower than that. Thanks in advance for all the help!

[ashly]

You can offer what ever you like but the lender will not accept a ridiculously low ball offer. If your sister in law has research the market like any good agent does you should respect her advice. Many times lenders will throw out a low price on a foreclosure listing hoping to get multiple offers which drive the price up rather than down. Foreclosures are not always a good deal as they are usually sold as is and can create problems with the buyer securing financing. It is often better to find a listing that is a conventional sale where the seller has to move. Good Luck