Linda, Home Buyer in Ventura, CA

What are the considerations for making a lower offer on an REO. Is there a rule of thumb?

Asked by Linda, Ventura, CA Sat Jul 5, 2008

For example- an REO is priced at 299K but the house needs the entire kitchen redone - kitchen is partly torn up and cabinets, sink, etc are needed, toilets and sinks missing in bathrooms and flooring is needed to cover concrete slab. I woul dnot be able to move in right away. Or another example is an REO that has been listed at 290,000 for 4 months.

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Susan Wesely, , Saint Paul, MN
Sun Jul 6, 2008
Linda - Coming up with an offer is an art, not a science. consider the actual sale price of comparable properties, adjust for differences between properties, adjust for time on the market, adjust for your gut feel on the seller's readiness to accept a low offer. Banks' agents have done this, and have a pretty good idea of what the property is really worth. They will advise their clients accordingly. At the same time, banks are NOT in the business of owning houses - they are trying to mitigate their losses. They may counter a "reasonable" lowball offer - and you will still get a good price. Best of luck - you could get a really good deal!
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