Updated about 16 years ago on . Most recent reply
making offers on reos?
i've been told that on reo's banks normally don't take less than 20% of asking price and its a waste of time to go out and offer half of list or below even if the property has been sitting for 5 months to a year or more. is this a good rule to follow?
Most Popular Reply
Like the others have said, offer based on your requirements, not based on the listing price.
Of the 20 or so REOs I've purchased, at least a few have been at 30-40% below list price. Probably close to half of them have been at 50% or more below the original price where I first submitted my offer; for example, it may have been listed at $100K, I offered $50K, got rejected, the bank dropped the price to $70K, I resubmitted my offer, and then got it for $50K or less.
So, make the offer based on what it's worth. If your offer is rejected, submit again after the next price drop (or a couple weeks later). The worst that can happen is that your offer can get rejected.