Question about making an offer to a major bank (HSBC) about one of their defaulted properties. Has there been a trend that these banks will accept much less than what the asking price is?
This property is selling for 34,900. The market value is 75,000. All of the homes in its immediate vicinity have sold or are selling for around 80,000.
No there is not a trend that they accept alot less than asking. Typically they accept very little less than asking. Depends on how long they are on the market, though.
If the house is on the market and unsold at 40K, its market value is not 75K. Its market value is the price someone is willing to pay for it…which is less than 40K in this case.
Could it be made to be worth 75K?
Maybe, that is what you have to decide and what is what will make you successful or not as an investor. But the details you provide don’t show anything. Do your comps and look into the property. Could be ANY number of reasons the house is worth less than others in the neighborhood. Some of those reasons are fixable cheaply (good for you) some are not (bad for you). You have to dig.
Apparently it is worth 75K…it is gone. Was only on for two weeks.
No it was worth 34,900.
That is what it sold at right?
A lot of banks are asking at least as much or more than similar owner occupied properties for sale. When banks finally figure out that they can’t get that amount, they will often start dropping the price a little at a time. Some of these properties you just have to keep your eye on until they get near the point where you think it’s worth the money. A lot of REOs need quite a bit of work. Some don’t. You just have to know your market values to get a good deal.