I had a realtor friend send me a listing of bank REO’s. I have a question about making an offer on one of these properties. The realtor listing the house is listing it at 296k. This house was listed “as-is” with the seller not making any repairs. I looked up the foreclosure in the public record and the final number with all fees added in was 177k.
Granted this may be a stupid question but I am learning. Should I offer 50% of the 177k or is the correct percentage 70%? Are all of the listings with the realtor inflated like this one?
Forget about the last question. That really was a stupid question. :-\
What you need to do is figure the ARV (After repaired Value) by doing comps. This has nothing to do with listing price or what the bank sold it for. Then figure out your purchase price formula minus repairs and that should be your offer price.
Exactly. You should focus on your numbers and if the deal works for you, not their numbers. Or course, you want to be realistic. If I saw an REO that was listed for 100K, I know that 50K would be a joke and a waste of my time and theirs. :