Question about an offer on a VA Forclosure

3 Replies

Hello BP community and thanks for reading my question. I was wondering if anyone has an idea about how much under the listing price one should offer on a VA Foreclosure. I was thinking of making a ridiculous offer since it has only been on the market a few days and waiting to see if they come back with a counter or if they come back with a submit final and best offer by a certain date. I know what my max is to make this a cashflow property but I obviously want to pay the least amount I can get away with since this is really my first time buying a property for the sole purpose of a buy and hold.

This for a 3bd 2ba condo built in 1992 with a tax assessed value of about 68K. I know there are a ton of other factors to consider such as rehab cost that need further analysis but if the asking price were about half the assessed value should I go with a conservative offer or is there a percentage of the list price I should go with?

I am also not afraid to walk away from this deal if the numbers do not work out for me.

Thanks for any suggestions.

Paul

Hey @Paul S.  I don't think I'd worry so much about how much to offer in relation to the list price. What are the comps saying about market value and how's the condition of the property? 

Have you offered on this one yet?

@Jody Young I have not made an offer yet I am waiting for a LOC to get approved so I can send proof of funds with my offer. Even with the list price I can still make this cash flow. I am making an assumption about the rehab cost since I am looking at this property from a different hemisphere.

I guess I just don't want to kick myself in the rear if I pay a price but then think I could have saved myself 5K on the purchase price. 

Paul

@Paul S.  , the market value and any rehab costs you have are much more important than whether to aggressively low-ball offer or only slightly low-ball offer on the condo. That said, if the property is listed at a very attractive price you can almost guarantee others are tracking it and looking to submit offers. I would try to contact the listing agent and ask if there has been much activity on the property. If so, run your numbers and determine what the highest price is that you'd pay for the property and get an offer submitted. If there isn't much activity then through in a low-ball offer and see what kind of response you get.

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