Post Sheriff Sale Discounts
Once the bank has taken the property back via sheriff sale and listed it with the realtor, it seems they are asking market price. Any ideas how much they'll drop the price? Is it basically like figuring a short sale after the fact, other than you just do the numbers and present them with an offer?
From what I've seen it seems that each bank has their own way of doing things. However, around my area it is fairly common for properties to be listed at market value for 45-60 days and then about every 30 days the price is lowered until sold.
Not sure if this helps you but I have never bought a REO property so I don't have much info.
Sue,
This is how it works. The bank will request a BPO -Broker' Price Opinion from the broker. What happens is an appraiser will go out and do an appraisal. In the old days, the banks will sell most of the properties in "As-Is" condition. As of lately, they have caught on and are rehabbing a lot more properties. There are still some diamond's in the rough though. The longer the property sits on the market, the more motivated they are. In a depressed market, the banks are more apt to work with investor's. This is where you come in. You can find out who the bank reo agents are by searching thru the MLS.
The key is to build a relationship with the real-estate agent or broker who is listing the property. Whether or not they accept your offer, here is the magic question:
"What else do you have coming up that I can look at?"
Best Riches,
Jeff Adam
[addsig]