REO- What Do I Offer?
Iv Seen some REO'S listed with an agant and now i getting ready to evaluate an offer. If i offer below what they are listining with an agent am i gonna get laughed at and told have a nice day? Should I take discouts into account when evaluating propery value based upon th conditon of the home?
Offer both what you feel the property is really worth, and what you can afford to pay.
The objective is to acquire the property so that you can manufacture some profit.
Monmouth County is a verrrrrrrry competitive market, so make your offer the best it can be.
If the property is located in Monmouth County, I would be happy to perform a comprehensive, albeit non invasive inspection, and, help you prepare an Offer supported by a modified Short Sale Proposal. Once the Report and Supported Offer is provided to the listing broker, the broker is bound to disclose any defects so indicated in the report... to any other potential Purchasers placing you in the driver's seat. Send me a PM.
Who cares if he laughs at you. If he does, laugh back at him. But I highly recommend you to educate yourself about this property and comps. You also need to assess the cost of repair, and what the FMV will be after repair is done.
When I was trying to sell my house a few years ago, I was amazed most of investors did not do any home work what so ever before making offers to us. They made totally reduculous offers like 20K below what we owed. I did not laugh at them, but I was very unhappy that they wasted my time. Just like when you walk into a car dealer, would you offer $5K for a two year old Lexus? I would think you educate yourself enough before going to the dealer, so you could get a good deal.
Only time we laughed at somebody who made a reduculous offer was at the car dealer. A sales person who wanted us to lease a Dodge Neon for $400 per month. We laughed so hard and tears came out of our eyes. We just could not help ourselves.
Somebody said 60% of FMV after the repair is done minus the cost of repair will be a good number for a purhcase price. I think that this is a good formula, but it all depends on the property you are looking at. We bought a property in March. According to this formula we over paid by 28K, but this house sits on the double lot, so we will divide it and build another house. The estimate profit from the both properties will be at least 100K. Good luck. <IMG SRC="images/forum/smilies/icon_wink.gif"> [ Edited by SmileyFace on Date 10/29/2003 ]
Smiley, you are absolutely right. In my opinion, due to the very competitive atmosphere, you only get one shot at making an offer. If you blow it, there are scores of other potential buyers waiting for a chance to make an offer.
What sets apart one offer from another? The presentation.
I offered to help the original poster with his due diligence, presentation, and acquisition negotiation for his 'lead' . I guess my offer wasn't considered. Too bad.
I'd like to see some of these time sensitive 'leads' result in win/win transactions for both the Buyer and Seller... instead of dieing on the vine at the expense of the Seller...