Rehab On REO
Question for the very knowledgeable people on this board. Thinking about a REO that just came on the market needs about 15,000.00 in work. They have it with a realtor for FMV. A lot of new homes going in subdiviosn real cheap. Would like to offer about 85,000, FMV is 136,000. Does anyone have any knowledge about how much bargaining Freddie Mac will do , I realize that it just came on the market. Thanks to anyone who could help me.
Because it was just listed, your offer will be probally tossed aside. Now, if that property had been on the market for 6-12 months, then they may not think your so crazy
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Freddie Mac will rarely accept an offer that is more than 10% below the list. However, they are absolutely going to sell the property. They simple reduce the price gradually. I've never heard of them excepting a low ball offer but you never know. If you really want it at the price you mention, you will have to keep an eye on it until it gets within about 20% of the price you mentioned. Then start submitting offers. Of course, there is always the chance it will sell before it reaches your price, but that's just the way it goes.
10% is the lowest I have seen them go. You are going to have to wait for it to get into your range to make the offerm but, better to do this than pay more than the property is worth.
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