-
Find Us Here
-
-
Low Balling on a REO or Foreclosure…
Well… Yes and No
Now that I have your attention, can you really lowball a bank on one of their properties and win? It can happen, you don’t know until you try. The question is, how bad do you want the house? You also want a good deal but banks are well informed when they list a house.
The usually have a BPO or Broker Price Opinion up front so they have a idea of what the market is doing, even though they are probably a couple of states away. Some banks even hire an appraiser to also give the value back to the bank.
So where do you start?
If you are going to make a low offer, have some comparables to support your offer. Do your homework in the area, compare some traditional homes for sale to REO properties that are also for sale. Some REO properties 10-30% less in some areas, I’m just saying, not all areas but some.
Make an offer that you think is right, what you are willing to pay for the property. Banks will usually comeback with counters, but stick to your guns and say it is your highest and best. Make sure your financing is in line or cash. Just because an offer is cash doesn’t always mean they will think it is better, it’s all about the bottom line.
Factors that might influence
Days on market is always a factor, if the house has been on the market for ages. They just might be willing to part with the property pretty quick. Most lenders like a non contingent buyer that can close fast and has no strings attached. The biggest of course is the bottom line, it all has to look good on their books.
Sometimes it seem like there is no rhyme or reason to the madness, that is for sure. They might accept one offer that doesn’t make sense or deny another offer that is solid.
If you enjoyed this post, make sure you subscribe to my RSS feed!
comments
Leave a Reply
