There is a Chase owned REO that was just listed a week ago that I am extremely interested in. We had 2 showings this past week and put an offer in today (it was the first day that they would take offers). Our realtor put in the offer for us to have a response for Monday. The listing realtor said that there were 3 other showings in the past week.
The house is listed at $290,000 and we offered $270,000. We will be taking a conventional loan and also put that we can close in 30 days. Do you think this is a reasonable offer? Does anyone have an experience buying an REO from Chase?
There’s no way to know within these parameters. Can’t solve for one variable with too many other floating variables.
Wow that reminds me of multivariable calculus...
Anyway, stick to your principles. REO is a numbers game, in terms of volume of offers.
70% of ARV may be a good place to start.
Tough to say.
Is this a flip, buy and hold, something you want to live in?
Any help from the message board would need to see the numbers ARV, repairs estimate, cash flow, cash on cash returns, etc.
Most banks want cash offers with no contingencies. Telling them you can close in 30 doesn't mean much. Conventional loans usually take 45 due to TRID. Anyone offering cash and waiving contingencies would beat your offer.
Thanks for your response! This would be a house that I would live in. From what I am reading, it sounds like there really is no straight answer.
The house has been abandoned for 4 years. It’s a lot of cosmetic work, however there is water damage in 2 rooms, with one of them showing signs of mold. We also found a pipe that is leaking.
We aren’t going to be doing an inspection, so the only contingicy is the mortgage.
I guess we will just have to wait and see what the bank says.
Okay. That's more detail.
It's not likely that the house will pass appraisal for traditional financing if there is water damage and mold. It depends on the source of the problem.
Banks 99% of the time in a seller's market will be unwilling to do repairs on REOs, which is why they prefer cash.
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