REO Properties; Making An Offer
I have found a few REO properties that I would like to make an offer on. The properties are listed at near FMV. I have read, and heard, that you can usually get these below FMV. My question is how much below FMV should I offer? I don't want to insult anyone or look like an idiot. I plan to rent the house and keep it long term. Any advice would be appreciated.
David
The worse the condition the lower the offer should be. Banks etc do not like rehabs and they sell slower. Check how long the property has been on the market. The longer the lower the offer. You can make 100 offers at 70 % and get some response maybe 2 or 3. Offer 80% amd maybe 10 will respond. Some will write rejected and some may not even call back. I would work the oldest ugliest and in the worst location to find cheaper prices and more flexible sellers. Some may take 50%. I have done that several times with fire properties and knock downs
Hope this helps some
Ted Jr
david, most definitely the length of time they've been listed makes all the difference. if you find something that's been on the market as REO for 6 months, TO ME, that warrants a lowball offer - you never know. speak with someone about a bank's maintenance costs of keeping an unperforming property and you won't feel like an idiot or like you're insulting anyone for making a low bid. you'll look like a scheister to some and an intelligent investor to others - but not an idiot either way.
Quote:
On 2003-11-20 08:14, davidwburns wrote:
I have found a few REO properties that I would like to make an offer on. The properties are listed at near FMV. I have read, and heard, that you can usually get these below FMV. My question is how much below FMV should I offer? I don't want to insult anyone or look like an idiot. I plan to rent the house and keep it long term. Any advice would be appreciated.
David