I have a contact at the local bank who sends me list of foreclosures.
This time she called and said that a property that I was interested in is appraised for $175k and asked if I am interested in putting an offer. I am going to see the property tomorrow to see what work is needed…The banker also told me that there is no realtor assigned yet and I will have to collect the key at the bank and look the house myself.
I am going to offer based on the (0.7)*ARV-Repairs-Carrying costs
I also know that there is a mortgage for $160k on the house in 2008 so I can guestimate the amount still owed to the bank.
So, my question to you guys is 1) what % of the left over mortgage does the bank takes? (20% disc or 25%) is there a magic number on this discount?
2) Since there is no realtor can I assume the discount of 6% right away?
Could you please post how can I take advantage of this situation of property not listed thru agent yet.
Torojd, Thanks for your response… actually the house needs a very little bit of work of about 5k. I offered 118k and the bank rejected right off the bat… made a verbal offer at 11.0 in the morning and they called me back at 3.0pm… I said my offer is open just in case things change on their side…
My next steps on this property is … if the back comes back to me then I will offer full cash purchase…
I moved on and working on another such opportunity… will make an offer tomorrow…