How much do you offer on a REO listing? %?

Random Ramblings
1

How much do you offer on a REO listing? %?

90%? 80%? 75%? 50%?

There is a few active MLS listings that i would like to purchase, that has no offers on them, and its been several weeks… I’m thinking about making a few offers…

So my question is this, will a 50% or 75% of asking offer, be very insulting?

Will they even try to counter?
Anyone care to share similar stories?

Thanks

2

Hi,

What you offer is dependant of the market your in? If your market is growing, showing appreciation, stable and not part of the mortgage crisis per say; you can offer as little as 75%!

If the market your in is bad, has falling home values, was hit hard by the mortgage crisis you don’t want to offer any more than 65% roughly!

There is ground inbetween at 70% but you have to be the one to discern your market!

This is for a pristine property, updated recently, in good conditional overall and sellable without doing any work!

If the property needs work, deduct your cost over and above the discount!!!

                  GR
3

Banks won’t get personally offended by a lowball offer like a homeowner might. If it’s too low, they may just reject the offer like any other seller. There’s not any certain magical percentage offer that banks go by. I have noticed that homes for sale by HUD usually won’t accept an offer electronically unless it is 90% of list price or greater. If you want to offer less on those, you’ll just have to wait until they lower the price. Some banks will lower the price almost on a schedule. Other ones just want to hold out hoping for their high price.

4

the list prices around here seem to be so crazy that I don’t even pay much attention to them,I’ve seen houses that I’d love to pick up for the list price,and others I wouldn’t give you 50% of what the bank has it listed for,

5

Asking price is useless. What you want to use is current value and you can find that out by analyzing sold comps. It is wise to never go over 70% of current value, the more below that the better. Also important that the property cash flows as that will result in multiple exit strategies and significantly mitigate risk.