Hey everyone. For anyone with experience buying foreclosure properties listed by agents, can you usually get an offer below listing price accepted? How about using a promisary note as a deposit?
As far as them taking less than listing price, yeah that is common. As far as a note for the deposit… that kind of defeats the purpose of having a deposit. The deposit is so that you won’t default on the agreement. You are wanting to make an agreement that you won’t default on the agreement… so my answer there would be no way. You can make it so you do not give the deposit until the offer is accepted, though.
You can offer below asking. We usually call before making an offer. I’m surprised that one of our offers on a REO may get accepted. List price is $123k and we offered $66k cash. Cash is king on these.
We dont have any luck getting deals on REO properties in my area (northern Atlanta). It seems that the bank almost always lists the property at very close to ARV and the houses always need work. We arent looking to steal them or anything, but we havent had any offers accepted (0 for 43) and we are bidding around 70-73% of ARV. Im sure other markets are different, but we just dont know how to be successful in this segment in our area. I would love to know what we could do to improve…
That’s because Atlanta is apparently full of “mooks” wanting into the REI game at any cost and are willing to pay for it…the good news is that a lot of them fail and you get another opportunity at the property.
They’ve watched too many episodes of “Flip This House” with Sam!
Keith
- you are right keith i fear >>> as tv is nice but for some real life sucks and they can not deal with it
You could be right Keith, but that doesnt make it any less frustrating…
So I assume you are hearing the same thing about the Atlanta area from your other sources?? Its s simple numbers game for me and some of the prices these REOs are going for have to either be homeowners or moronic investors…
hey butler, glad you have been trying and havent given up. there are around 27 houses in atlanta for sale right now as reo asset. not all are steals but there are a few you might be able to make a minimum of 15K up to around 30. They look like paint and carpet should make them resellable. LKeep checking. when a bank lists a home through reo asset they will always accept 92% of what they are asking then each week they are on the market the price goes down. Even if you were rejected the first time stick with the houses they will go down if they dont sell or the supposed buyer cant come up with funding.
Yes…there used to be a gal on here tha was pretty active…she said people were paying over list for garbage that she was wanting discounted 30%. She said it was ludicrous.
Keith
Good lord thats crazy! check out 33 Park avenue se atlanta. Tax assessor says its worth 94,300. Is this area crap or is it worth doing? If the price was right ofcourse. Im not doing it, just trying to find you something that might work for you. its one of many i know about
Tax assessed value means squat…it’s about as accurate as a “zillow” comp…
Keith
its usually less than what the house is worth. i get my info from the local county where the home is located. if a home is stated to be 100K its not going to be actually 20K. Its usually more if not alot more. so if a house is tax assessed at 90 K and you buy it for 30K you dont think thats a deal?
Not necessarily…if a property has a real and current appraisal for $100K and you can get it for $30K, it’s probably a deal. Every tax assessors office is different. They usually only appraise every so often (sometimes appraisals are as much as 5 or more years old)…tax appraisals only have one reason – to generate and document some sort of tax base. Using that base, the taxing municipality develops a “millage rate”. The millage rate multiplied by the assessed value = tax owed. The appraisal needs not be overly accurate or current for that purpose because all the tax office has to do is adjust the millage rate.
Keith
Not always true. I have seen plenty of houses sell for $30k that assess for 80-90k. Happens here all the time in the area considered to be the rougher area of town. Problem usually is that it was completely remodeled and sold for 90k not long ago but over the last 2-3 years pipes have burst, and the previous owner just tore the hell out of the place. Also seen it the other way around, houses selling for $90k that assess for $40k(selling one myself, assessed value was based on old value)
Assessed home for $90k and you can buy it for $30k, it might not be a deal as much as a major rehab. Definitely no way to tell based on assessed value.
ok different areas have different ways of tax assessing. Ive dealt with new jersey, pennsylvania, ohio, florida, california, and indiana and never had a problem. Usually the amount they stated as assessed value was lower than what the actual value was. Guess im just overly lucky so far
Often that’s true and mostly because the assessment is old. Just wait for the uproar when folks in California cannot sell for $100K less than their assessment!
Keith
lol, i hear you on that one. I know of someone that sold a 1 bedroom efficiency for 550K. thats just crazy