Does anyone do bank reos? How much percentage below asking price do you bid if the auction is not daily. And how much if its daily. Most banks / HUD homes have a couple of weeks before the bid deadline, then go into the daily category. Does that mean no one was interested in the property?
Your strategy with a bank owned property should probably have the same starting point as with a HUD owned property. In either case, figure out the maximum amount that you would be willing to pay given the property’s condition and your intended use for the property.
With the HUD property, wait until the owner occupant bidding period is over and the property becomes available to “all purchasers”. On the first day that happens, have your HUD approved real estate broker sumbit your bid for the maximum amount you are willing to pay. If no bids are accepted by HUD, then you know your offer was too low. Wait until the property is listed again at a reduced price, and resubmit your bid. Repeat as often as necessary until there is a winner. HUD sales are auctions, there is no negotiation (counteroffer).
With the bank owned property, I would start lower than my maximum offer price because the bank does make counteroffers. Unlike the HUD auction, you can keep offering and counteroffering until you either reach your maximum offer price, or the bank accepts an offer.