Hi Chris. I’m going to give an answer to your question, but I want to point out something I often tell my customers. I am an expert on home finance and mortgages. When it comes to real estate, the expert should be your real estate agent. So your question is probably better answered by your realtor presuming that they represent you and not the seller. Regardless, here goes.
Real estate contracts are negotiated in writing. You shouldn’t offer more than you are willing to pay and I presume you are not willing to pay more that you think it is worth. Apparently you think that the property is worth $50K less than it is listed for based on a CMA that I presume that your realtor gave you. If your agent represents you I would presume that it is their professional opinion that it would not be in your best interest to pay much, if any, over their opinion of the property’s market value. Note that there is a lot of presuming going on here.
When you have decided what to offer for the property after consulting with your real estate professional, make an offer, in writing, with the terms you are willing to pay. Telling the seller that their property is overpriced is moot. Either they will accept your offer…or not. Since it is a Homepath property they have had it appraised. If their appraisal is $50K less than the list price, they already know the information that you want to convey. If their appraisal is at or near what they have it listed for, they are not going to care that you have a CMA that says their appraisal is off by $50,000.
With that said, if you make an offer that is well under the list price it is not unprecedented for your agent to tell the listing agent the reason your offer is so low. You can instruct your agent to provide the CMA to the listing agent with your offer. The listing agent is obligated to pass on any information given them to the seller unless the seller has instructed them not to. In this case the seller, Fannie Mae, may have instructed their agent not to give them buyer’s CMAs, buyer’s inspections, etc. It’s called plausible deniability. “We (insert REO seller here) didn’t know the property was $50K overpriced, we didn’t know it had foundation problems, we didn’t know it had a mold problem….”
Bottom line is…they don’t care. They don’t care about your opinion of the value. They don’t care about your agent’s opinion of the value. They don’t care if you buy the house, unless you are willing to buy it under their terms and policies. They just don’t care. And that is an advantage they have over you. They don’t care, but you do. And your CMA isn’t going to change that.
Good luck on your house hunting and best wishes in your new home when you find it!