Mik,

Are you represented? If so, please consult your rep while disregarding the following:

Note: I'd like to endorse that Dan's and Emma's responses are accurate and useful.

Appears to me that you're doing just fine (considering you were willing to pay $80K).

Seems your ultimate question/ concern is whether you are wise to risk pushing for $71K. That's your decision--- The risk is subject to your willingness to own the property (your terms, your conditions).

A bank' s loss mitigation decision will only be as reliable as the party approving (or not) the terms of the Agreement. They're all different although most banks reveal plenty of evidence of being poorly equipped and grossly unprepared in terms of maximizing their REO cost/benefit outcomes.

Ultimately, if the bank has demonstrated expedient habits, a buyer may be more encouraged to press the $71K. If not, may decide otherwise. I'll add that a bank's expedience can reflect greater sophistication and discernment for fair terms and conditions. As far as REO sales go, those are often the only inferences that speak to the matter.

Mik, where's your agent? While this clearing house of information may be helpful, we do not know the particulars of your transaction. That's not specific enough for your needs.

You've received good answers already, but there's one vital point missing: How much is the house worth?

For example, if after repairs it'll be worth $175,000, then take the bank's offer immediately. It's a great deal no matter what.

On the other hand, if after repairs it'll be worth $100,000, it needs $20,000 in repairs, and right now you can buy it for $75,000, then you've got to squeeze every penny out that you can.

Recognize, as others note, that you can lose the deal. If you counter the bank, then the bank's offer is dead. (Your Realtor can provide the details.) So the question is: Do you need another $4,000 for the purchase to make sense? If you do, if the numbers are tight, then certainly counter. On the other hand, if it's a great deal already, you may not want to jeopardize the transaction.

Hope that helps.

Major plumbing and heating issues are to be expected with a house listed at $90k and have most likely already been factored into the price. If you want the house accept the counter offer of $75k and celebrate that you got a house at an incredible price.

Mik,

It's not likely that a bank who has a Buyer like you, who has already done inspections, gathered estimates and submitted an addendum for repair expenses, will walk away from your current negotiations. You offered $70K and they countered with $75K. There is no harm in making a counteroffer at $71K, but there is always a risk that they could dump you and your counteroffer (a small risk, in my opinion).

You need to have a quick talk with yourself and ask the question "would it destroy me to lose this house?" If the answer is yes, then take the bank's offer of $75K and get on with the repairs. If you wouldn't be crushed by losing the house, then submit your counteroffer and save as much money on the purchase as you can. Realize, though, that purchasing for $75K (or even $71K) and then adding $20K in repairs does put you over the original sale price of $90K. Is the bank getting the bargain here or are you?

Good luck with your purchase.
-Dan

1) Once you respond to a counter, they can do 1 of 3 things: reject your counter, accept your counter, or counter your counter. Unless you agree to their counter, you are risking that they will get out of negotiations with you. It may not be likely that they will, but that is the risk.
2) They are either going to stay at $75k or counter you again or accept your counter. These days, some banks will counter you just to make sure you are at your highest point. If you don't accept their counter, they may just take your offer for $71k.

I hope that helps!

Emma Faris, Realtor
http://www.dreamsbyemma.com
612-849-0022