bank owned home

[cliffdog]

hi does anyone  has problem with dealing with the bank far as getting them to come down on there price. the bank had a reo price a 25,900 i bidded 13,500 they counter at 20,900 so i counter back 16,500 final offer and they rejected my bid the house been on the market 4 month and it not worth 20,000 have ever had this problem???????

[FUTUREREILEGEND]

Just decide what you're gonna pay..................then offer less than that and wait. If you get to your limit and someone else buys it from them for more.....then you were smart and steadfast. If they come in and accept your offer eventually, you win again brother. Patience is a virtue.

[Dan732]

Either try again or find something else. Banks think Real Estate is worth a lot right now so they are pricing their properties close to or at retail. They will get hurt soon so I would hold off.

[JaredfromIndiana]

Yeah, I have found that banks like to sit on their properties and think they are worth more than they really are.  Use your formula, make your offer, and stick to it.  You never know what you might get.  

[Straightup]

Same story here in central WI.  Banks are looking for ridiculous prices on places that should be dozed...  and often getting it.. : :

[black95gt]

Yep im siting in the same boat right now as well.  There is a house witha  market value, (when fixed up) of $90,000 -$100,00 and the bank wants $61,000 for it.  I have an offer of $35,000 that i am waiting to here back from.  They already rejected an offer of around $25,000 and someone else submited an offer pretty close to mine, but they are stating that it will be non-owner occupied, which i stated mine will be owner-occupied.  Ive estimated the house to cost $25,000 in material alone, so since i do all my own work, i will have about $65,000 when its all said and done.  Then i will prolly try to sell it for the first couple months after its done, and if i cant sell it right away, i will live in it and have $25-$30k equity in it.  But it sounds like  i will probably get the offer accpeted according to my realtor.  But damn, banks are frickin slow to get back to you.

[FUTUREREILEGEND]

on a $112,000 home. The FMV seems to be about $108,000 and I think it will need about $7,500 worth of work, then the FMV will be about $125,000. I've never dealt with Freddie Mac, has anyone else?

[mcwagner]

We recently did a Freddie Mac Deal.  Property was on the market for over a year before they finally decided to take a loss.  FMV rehabbed is around $135; we got in for $87 plus around 10 in repairs.  Plus Freddie sucked it up and repaired the foundation (which shocked the hell out of me).  They wouldn't go WAY below market, but we'll still turn a tidy profit.

[campbellgroup]

Banks are funny .All depends on THEIR situation and that we never know?

[youhan]

I find that when dealing with REO's it is best to go with your gut. I always go into a deal with a price that I am confortable with paying and I stick to it no matter how bad I want it. I just shake it off and go to the next deal. Never waver on your gut feelings. Remember some deals are not worth doing and someone else may want that property more than you do. I always go in low and work my way up to to final price and then I wait and see if they come to me. Kris

[campbellgroup]

I have to say we invest a lot in our gut feeling as we feel we have a very educated knowledge of the industry which is what our gut is full of ,KNOWLEDGE,so If my gut is turning Im not buying.

[MikeHgl]

Cliffdog - Exercise patience with bank REO's. Banks have strange tactics when it comes to selling their duds. I held out on my last purchase for 4 months and submitted 3 p/a's with the bank brfore the idiots sold to me. Not only that but they sold to me for about $8K LESS than my original offer. They had set an unrealistic selling price, shut off the power to the home, winterized it and locked the doors and lost the keys. Then they wondered why so few intersted parties were inquiring about the property.Duh... ( See my recently posted story in the "Success stories" column)
Just be patient and persistant. They will eventually come to their senses and you will ( hopefully ) be the first in line.