OfflineJust a real quick question on REO's is how does the bank determine the asking price of a distressed home?
Always wondered that. Thank you!
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What I have noticed around here anyway is the bank sets there price by what the paid at the sheriffs sale and how long they have had to hold it. They always have the realestate agent set the price at FMV and negotiate from there. I bought a house at 20% below what they paid for it at Sheriff's sale but it had been on the market for 100 + days and I sold it 30 days later on a Lease Option for 100 less than the realestate agent had it listed for. But WY isn't as depressed of a market as some states. Hope this helps, they try to recoup as much as possible the longer it is on the market the better chance u have of getting a lower price.
Donna
In real estate things can go in different directions depending on the property. When you have a property going into foreclosure, the lender will normally start the bidding at auction based on what is owed. But when the property is upside down, the agent can pull comps to find the fmv and go from there. Hope this helps.
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This is the first time i've actually posted any comment or question. Ive enjoyed reading these very informative comments by the DG fam. and Im pleased as punch to be a part. I have to say that I love Dean (in a manly kind of way, Ha!) for his kind intentions towards his DG "ever growing family".
Question: I found an agent to work with. I shared with her my plan (matts 25:1 plan). Find 100 houses, choose 25 to 30 and make offers @ 30 to 50% under fmv.. Can this method also be used for REO's and foreclosures??? or would I have to "pre-qualify" in order to place an offer?
Thanks guy's for your help!!!
the Lender's criteria for them to even look at your offer. You should have a POF letter, at least, to represent to your agent.
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Banks get the price they are going to list the property for from a
BPO, they have a Broker inspect the property an give a fair market
Value based on the condition of the property whick is a Brokers Price Opinion.
Hope this helps
whurndon
Good Luck & Good Investing