Does anyone have any tips or advice when negotiating a purchase price on an REO with the bank?
Don't use the banks price as your guide. Use your numbers. Some REOs are priced way over value, while others, like those in the HomePath program, are sometimes priced 50% below market. As an investor, use your numbers. If it's not near your number, there is a reason it's not priced right. Sometimes they do it to control inventory. Other times it's enlisted in a program like HomePath, where owner-occupied bidders get first crack and we get to bid 20 days after it hits the market. In that instance, you need to make an incredibly strong offer with short inspections & closing times, all cash, state you've visited the property etc. I've bid on several HomePath properties with my highest and best right off the bat, one was 10k over the $34,900 list, was still a sweet deal for me and I still didn't get it. On the flip side, I have one under contract that I absolutely crushed. My net worth will go up 15k the day I sign the papers.
It just depends on the bank and the deal, and having a kick *** agent represent you.
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