Trying to learn about what properties sold by banks are selling for (REOs). Is asking price * 70% - repairs = offer a good strategy? When you do repair cost do you do minimal repairs or upgrades? (Carpet vs LVP etc).
Trying to learn about what properties sold by banks are selling for (REOs). Is asking price * 70% - repairs = offer a good strategy? When you do repair cost do you do minimal repairs or upgrades? (Carpet vs LVP etc).
REOs are like nailing jello to a wall. They slip away and frankly are more trouble than they are worth. A bank gets a BPO (Broker's Price Opinion) from their real estate agent. They then decide if they are willing to list with the agent.
If you have substantial capital and can close quickly, with cash, no inspection you might be able to do what you are suggesting.
But a bank is incentivized to get as much as they can, with the least amount of hassle and they will believe their real estate agent before they believe you on numbers, closing time, availability of funds. They believe putting it on the MLS will make the most sense to them.
Like everyone else, we are always willing to partner with people that want to learn through experience and find more propductive ways to find deals.
There is money to be made in real estate in this current economy, if you find deals that have not yet hit the MLS. Deals where you are dealing directly with a private party. There is a special approach to doing that and you have little competition when you focus on those.
I hear you, if the valuation is right then it's great, but there has to be some meat on the bone to actually get a good deal. Trying to figure out what their pain point is to see if terms might help.