Everyday if the numbers work. If your ARV is $160K and needs $25K in repairs, chances are their numbers are the same so, for your scenario, I don't see that happening. They are going to sell it for market value and doesn't sound like market value is less than $90K.
@Nick Dillaha You're evaluating this scenario completely wrong, The bank will accept offers close to what the property is worth today, The price in which they took the property back will not weigh on the Asset Manager as he's pricing against the current market then expecting investors to come in somewhere between current value and current value plus estimated repair cost.
I bought an REO from Bank of America that they listed at $199,000, Because I know my market and looked at Comps, I knew this property was priced a little low to attract buyers, I also know most buyers are inexperienced buyers only doing what they are told to do on the many websites and that's offer much lower than what the bank is asking and not looking at all other variables in the deal, I offered the $199,000 the bank was asking and at closing the property appraised at $225,000.
I had no problem paying the bank listed price especially when it resulted in me getting $26,000 in equity from day 1.
Could I have gotten it for a lower price? Maybe but then that would have meant a risk of losing the property to other bidders and giving up the property I knew was underpriced.
What is the property currently worth?
Hey @Ray Johnson , thanks for your response. The ARV is $170k, but the home needs a total rehab ground to ceiling. My end goal is to sell it after the rehab, I just didn't want to waste anyone's time making an offer lower than what the bank took it back for if that just doesn't happen in today's market. Asking is $90k, rehab $40k? (It's a 1021 sq ft box), + realtor/holding/closing/unexpected costs... My realtor stated it won't go for near asking price and that because It's a total gut that they'll probably accept an offer based on the land only. Thoughts?
I’m assuming you’re renting the property you mentioned?
They use a current Appraisal and/or BPO to sell the property .. they do not base the price off what was owed.