Foreclosure fixer offer strategy

3 Replies

Hello Folks!

So I'm wondering what strategy you guys have found effective buying a fixer upper from a major bank. Assuming the property needs significant work (roof, hvac, vandalism to windows, doors and plumbing)

Do you,

A. View property, get prices from contractors for the repairs required. Use estimates as justification for a low offer?

Or

B. Get an accepted offer with an inspection contingency, get quotes for the repairs. Then renegotiate the offer with the repair quote as back up?

Lets hear your experience!

Thanks

I am looking for my first investment property to purchase and have been wondering the same question myself for some time. The more I discuss it with those more experienced ( who invariably have a better "sense" on cost of repairs and ARV) I am under the impression if you find a property and spend some time analyzing its ammenities and features (and these coincide with your criteria), condition, neighborhood, etc, and your gut says "lets consider this one", compile some estimates for your repairs, build your profit in, your discount, and then shoot an offer over, with an explanation.

At least if you put it under contract, you have some time with inspections and those more experienced in your circle to really look at the property with a fine-toothed comb. This gives you time to breathe and reach out to your circle to help you make a smart purchase, or back out of a bad one. 

Again, I am looking for my first investment property so I am no expert, hopefully others will read this and add to it. Hope this helps

Banks don't care about what kinds of estimates you get, either before or after a contract.  If you get it under contract, don't expect a reduction due to your estimates.....nothing changed between then and when you made your offer.

Promotion
Roofstock
Buy & sell single-family rentals online
Radically accessible real estate investing
Get access to exclusive property listings, proprietary data, and support to build your portfolio.
Learn More