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

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?



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!!!


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.

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,

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.