Making an offer on foreclosed property

2 Replies

Hello BP family I am in the process of making an offer on a Chicago SF home 3 beds 3 bath. It is listed at 140k and in need of approximately 15K work. The properties in the area are within the 190 to 240k range. 

My question to those who may know. What is considered a low ball offer and what would be considered a good offer. My take is I use the valuation of 220k after repair value and offer .50 cents on the dollar which will equate to 110k. Is that off base

Find an agent. An experienced REO buying agent has accessed to auction prices that were rejected. That would be a good baseline to determine your initial offer. Also, make sure to check the foreclosed property to determine if it is salvageable for a profit. Most likely the person you may sell to will be rehabbers so it is important to put that calculation into account. Usually, Purchase Price + Repair Cost= 75% of ARV is a good deal for rehabbers. So in this case, the Purchase Price should be your selling cost. So try to work your offer price around these ideas.

Hope this helped, and feel free to ask for more information.

Thank you I will keep this in mind..