Home Buying in 96021>Question Details

Coprtop, Home Buyer in Corning, CA

how much of a discount do banks accept on REO. What if they need work like a new roof or appliances etc?

Asked by Coprtop, Corning, CA Mon Sep 13, 2010

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In most cases the lender will provide a cook stove, since it has to be a functioning kitchen. Write it into the offer for the REO Seller to provide in escrow. The banks will reduce the properties every 30 days that there is no offer. I would not be afraid to submit a lower offer than they are asking. They are looking at their bottom line. Make the offer what is the worst that they can say "NO"
0 votes Thank Flag Link Thu Sep 29, 2011
When banks list properties they have already taken in consideration, the location of the property, the distressed value, and the condition of the property. So, if the property needs a new roof and appliances, the listed price is based on these factors. Speak with an agent in your area who can give you an analysis of the property and REO comps that have sold recently. The agent can also assist you with placing an offer.

Best of luck to you!
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0 votes Thank Flag Link Thu Sep 16, 2010
You should never base your offer on an asking price, you need to assess what the house is worth in todays market in its current condition and base your offer on that. you do not know if teh bank has priced the house right at market value, already discounted below martket value or price dit ablove. Using a straight percentage off withoutr knowing what it is worth can lead you to overpaying or getting your offer rejected for being to low.

Please see my blog with tips and advice on how to find and make offers on bank owned properties
0 votes Thank Flag Link Tue Sep 14, 2010
REO listed properties are generally priced to sell at the listed price, and often there are multiple offers which
result in "over-bids". They are "as-is" and subject to your inspections (i.e., termite, structual, etc...) typically within 7 days from your acceptance date. In todays market, depending on the market activity in your area, expect to compete with all cash buyers, which are preferred by the lender/seller.
0 votes Thank Flag Link Mon Sep 13, 2010
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