Kelly, You won't find any hard and fast rules here and looking at what the transfer was at
the sheriffs sale doesnâ€™t really give you much more to go on... In fact it's more likely to be
misleading. Do your due diligence. Pull the courthouse information and find out: How
long ago did the (foreclosed on) owner buy the house? What was his mortgage amount?
What type of loan was it? When did the lender gain title to the property? How long has it
been back on the market? Has the property had price reductions? Has the bank had any
offers yet? How is its price compared to recent sales in the neighborhood? Do you feel
that price is reasonable for it's location, condition and the "as is" risk? Are there
conditions in the property... mold, standing water, foundation issues, problems with
mechanical systems that the lender may not be aware of (and doesn't want to deal with)
that would allow you to negotiate a better deal?
The bottom line here is the more risk you are ready to take on the better the price you're
likely to get. . Some lenders will price their Roeâ€™s at deep discounts to solicit multiple
offers and often sell for more than the list price. Other's price just below the market and
will negotiate more. The information you've reviewed and your agent should give you all
the insight you'll need to structure your offer. - Dan