i live in detroit, mi and i am a new investor the bank has a reo listed at 25,900 the house has been on the market 4 mo. they just drop the price to 21,900, comp in the area range from 35,000 to 55,000 the house next door just sold for 35,000 my first offer was 13,500 which was rejected so i counter to 16,500 which was also rejected the total ARV should be 40,000 and the total repair is 7500 can anyone tell me what my offer should be thank you
I was told by a realtor that HUD has a 15% rule to automatically reject offers. I would offer $19K and walk away if they reject it. You still stand to make over $10K and that is still a pretty good return. You have to know what it is going to cost to finish and you learn by making mistakes and the mistakes of others. You don’t make anything if you don’t act. Keep in mind this business is not as easy as many make it out to be.
this is not a hud house this a house own by the bank?