BiggerPockets

We typically offer $5,000 to banks. This shows we are serious. I know people that offer $100, but typically agents will not accept that.

If you are low-balling these offers what kinda percentage would you say get accepted?

Thanks

With a "mass low-balling" approach I got very few offers responded to. Even on the properties I have listed, I see these investors that come in at half of asking and I just turf the offers.

Find a property that the bank is willing to be flexible on (trashed, many days on market, etc) and negotiate until you get it.

You may also want to include in your package recently sold props that support your offer.

An itemized list of needed repairs w/price quotes from licensed contractors.

I'd also advise you to offer in the high side of your comfort range once you have a history of performance the banks will be much more willing to work with you.

If you are low-balling these offers what kinda percentage would you say get accepted?

That depends mostly on your local market conditions.

One great strategy is to check DOM and see which properties are languishing on the market for extended periods of time. These are the properties that the banks are the most motivated to get rid of at a bigger discount.

It's not just the emd that is important, but also the terms. All cash and no contingencies with quick closings get it done.

I just put a bid on a property for 5000 showing 500 EMD in check to the bank, asking for no closing assistance only contingent on inspection.

Is 500 appropriate for the bid I placed on the home? It's 10%?

Should I have put up 2500 instead to show them I'm serious?

True, but for higher value properties, I don;t want to tie up Hundreds of thousands for 14 or 21 or 30 days, so a large EMD is more than sufficient. At least it works for me.

I wouldn't make offers on an REO if you don't have at least $500 to put down in earnest money. While it's *possible* you might get an offer accepted with less, it's unlikely, and I'm not sure it's worth the time and effort to try.

Also if you are making offers on multiple properties are you writing checks for every property? That could add up pretty fast.

When an offer does get accepted, the realtor will generally ask you to provide certified funds for the earnest money, and will give you back your uncashed check. So, there's no reason why you can't write multiple checks without the worry of having them cashed. In fact, many agents are happy to just get a photocopy of the check, so you can actually use the same check for multiple offers.

Regardless, I would ask the agent you're working with for their guidance on this before you proceed...if they are used to making offers on REO properties, I'm sure it's not the first time they've gotten the question...

Thanks for the answers guys. I think it actually make sense to me now.