the case I am dealing with is an reo about 15k over where I would like it…I need some insight from one of you experienced investors about REO how much lower should I offer to still be in consideration…what is the largest discount you can get from a REO price listed with a realtor if they want 200k would they ever accept 150k please let me know asap. And are there some lenders that will do that and some that dont and how do I find out how long a property has been reo.
thank you for your help
shadow05,
Yes, banks will sometimes take a substantial discount. I bought a duplex for $11,000 (the bank was asking $49,000). In fact, I’ve bought a lot of REOs at well below the asking price. Will they do it in your case? I don’t know. The answer depends on the bank’s situation. Do they have a lot of bad loans? Is the bank examiner coming soon? Are they nearing the end of a quarter and want to clean-up their books?
Mike
It all depends on the bank, how long they have had the property on the market, what discounts have already been taken, how many REOs they have on their books currently.
If you have an offer in mind, just go ahead and offer it. They will either say no outright, or they might counter. If they say no, submit another offer, if you really are willing to pay a higher price.