REOs Selling Low At Year End?
Does anyone know if the banks actually accept low offers on properties at year end to try to get them off their books?
Made a couple of offers that were rejected not long ago and was considering making another offer since the year is closer to end.
Any experience with this?
[addsig]
Sorry, I don't know the answers, but am curious what the details of your offers were. What are the stats on your offers? How long were they on the market? What was FMV? Offer price? etc..
Thanks and good luck!
I think you are right. In addition, the longer a property sits the wider the wiggle room. What can it harm in making an offer? I have heard of people leaving the offer with the seller with their number and eventually they get a call that the offer will now be countered or accepted.
It never hurts to put an offer in on an REO, especially if it has been a few months. A recent example for us is 12 month later, we put in an offer $60K less and are walking in with $100K in equity.
I am not sure banks are necessarily more motivated at the end of the year as their fiscal years vary and don't always match up with the calander year.
If I am really interested in a property I will submit an offer quarterly and I knock off at least a $2,000 of my asking price.
Call the Realtor who is handling the property, get his/her web site of their other REO properties, and see what you can learn.
I did that recently on what I thought was a bank owned house. Turned out the Realtor represents Freddie Mac "repo's" in that area. He clued me in about how they drop their price every few weeks or months til it sells. They are not motivated to be in a hurry (why should they - tax payers are footing the bill) and he showed me one that has been on the books for over a year.
However, good deals CAN fall thru the cracks. And as foreclosures increase, you'll see more bargains.
I don't have an answer to your question but can give my experience on 1 REO I bid on.
My 1st offer of 71,500 was countered (by the REO Dept ) to 83,600 (only a few hundred below the 84,000 list price)
I countered to 73,650 only to be re-countered to
83,500 (UNREAL)
6 weeks later I submitted my 71,500 only to be re-countered the same.
I let it go and found another deal.
Well..........4-5 weeks after my 2nd offer,,, the property was sold,,,, for 68,650.
Almost 3,000 less than my original offer.
I have read REO Departments at banks will do this and nobody knows why.
I have read it and have seen this first hand.
Stick with it and keep re submitting those offers.
Through the offer process you find out information and make contacts that may help later if not on this deal.
The above post shows why you you would want to try again...weekly? Who knows, could be an employee who moves on next week, making those silly counters or turning down your offer.
I've lost some that made no sense, I've won some that made no sense. I still think winter is a winner for bidding.