getting ready to buy my 3rd rental property. bidding on ones that have been on market for over 100 days. The last one I bid 11% of asking price and my bid was accepted. In the past low ball offers have not been accepted in my area the banks just lower the price every month or two by 10%. Will banks counter offer on low ball bids? I was going to try to offer 20% down and see what happens.
I presume you mean you bid 89% of list, which if so is fairly reasonable and can expect a counter. Most unreasonable offers won't be countered or get countered at list price or list price minus $500.
Yes, I bid 89% on asking price on last one. The next one I was going to try to start at 80% of asking price (cash offer no inspections) and see what happens. I just didn't want to go too low and have them not even counter offer. My thought was try for a 20% discount and be willing to go up to a 10% discount.
I have seen some banks actively negotiate an REO and others you get only one chance to get to the right price. The seller's agent, I have found, usually has a pretty good idea of how active the bank wants to be and how low they might be willing to go.
@Kevin McDonald Sometimes what a bank will do is a complete and utter mystery. Ive seen extremely low ball bids accepted, and Ive seen people bid asking and it not get accepted.
I have had banks counter my offer and I have also had them just say no. Its a crap shoot. I would definitely make an offer especially if the house has been on the market for awhile and if they decline it put a new offer in alittle higher.
Thanks for the advice.
Low offers will either be declined completely, countered at list price, or countered at $1-3k off list price.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.