I came across a REO property with a asking price of $63,452, last sold for $158,800 in 1996. The value of properties in the subdivision are 279,000 - 310,000.
I drove to the house yesterday and did a walk around of property and it will probably need about $50,000 or a bit more in repairs/upgrades… Rotting soffits, some siding rotting, garage and basic cosmetic from what I can see from the windows.
The house has been banked owned since 10/27/07 and is still vacant with a lockbox on door. My agent couldn’t find a listing agent and will have to call lender tomorrow and inquire about said property since she is a bit baffled at not being able to find much information on it.
I have never submitted offers on an REO before and can’t see the bank letting it go for so low, is this the proper thinking on my part? They have not attempted to make any rehabs on the property and each day it is declining more and more with the rot. I was planning on doing a walk through with an inspector and contractor so I can get a much better idea of repairs and work involved.
Before I start talking more with my agent wanted to get a feel of those here with this situation. Would you offer below asking price and wait for counter or do you look at the equity involved when making offer?? This property needs work and even with $100,000 in repairs the profit is there and confused as why the asking is so low?