Wells Fargo REO, Listing, and Winning
I'm planning on making a bid on a Wells Fargo REO (listed on the MLS). Records show WF paid $137,500 in 4/17 and it is now listed at $65k. Since the comps in the neighborhood are $140-$200k, the listing agent is expecting multiple offers. I am going through with my contractor tomorrow to see what he thinks (I'm thinking about $50k but he may come back with a higher or lower rough estimate).
1. Is it odd for WF to list it at less than half what they paid for it. I mean, it definitely needs a LOT of work, but surely they aren't expecting the multiple offers to drive the selling price close to what they paid?
2. It is open only to owner-occupants (which I will be) starting on Thursday. Given that they are expecting multiple offers, which I'm sure will lead to a highest and best (which I can't determine until my contractor weighs in and I crunch numbers), thoughts on making the offer more appealing in general? I do have to finance, and planned on using a reno loan. Will a larger downpayment matter (say 10% instead of 5% or 20% instead of 5%) or would a larger earnest money deposit sway them more? What if waive the inspection (if my contractor feels comfortable with that idea)? I probably can't offer a quicker close than 30 days since I am relying on financing. Any other tips to make my offer more attractive?
Thanks!