Trying to figure out the best way to put together a convincing offer for an REO I’m looking at. It’s going to be about 40,000 off the asking price with a ARV of 135,000. After subtracting out the costs that is what would be worth it to me. The asking price is 125,000. So I don’t think they will take it but it’s worth a shot. So my question is what is the best way to put the offer together to help persuade them to accept it. I was going to take pictures of all the problem spots and eyesores. Then I was thinking about including a letter explaining alot of the major repairs that will be needed. Is there anything else you guys do when offering for an REO to help them accept a lowball offer. Also, How much does it help if any does an all cash deal have on them accepting the offer.
Good Luck !! The last time I put in an offer on REO Property that need 35k in repairs 100K property just to make it suitable to live in, they countered with a 3k discount! that was 8mo. ago and the property is still vacant. I’m submitting it again this week for the same amount.
anyway, the only thing you lose is time, so I would make offer, no biggie if they don’t accept. The have profit margins too.
A techniuque that is suggested for short sale packages is to not only include the things you mentioned (letter, pictures), but to actually include a repair estimate . Go with a contractor who is at the top end of the spectrum, rather than at the lower end.
I don’t know if this will work for you, but it’s a thought. Let me know how that works out for you?
Repair estimates very seldom work. The lenders typically already have “as is” values and improved values. If they have competent people supplying them with accurate figures they will not leave the properties go for much less.
I would include any past due bills. Overdue notices…and news articals about layoffs in your area. maybe something from the internet that shows how much foreclosures are up in the nation.
Remind them that this is not going to get any better and it is not going to slow down. :deal: