What is the average discount bank will give you on REO
Dear experts of our forum, I am trying to purchase an REO property from a lender institution and in pursuing this I have submitted a number of offers on different properties. These properties are on a very nice neighborhood in Dallas (Frisco)but they need some cosmetic repairs (carpet, painting,etc), so I offered banks 20% below market value to have room fro repairs and profit but evey offer was turned down. I waited and then submitted more offers in the same properties and some others but this time at a 15% discount, and still they were all turned down, so my question to the expert investors on our forum is:
is 10% or less the average discount that banks will give you on an average REO house ($165-200K worth).
I just want to get a feel for how much of a discount banks will be willing to give me to see if some properties interest me or not. In any case a beleave that unless the property in very bad shape they will never give it you at 20% discount it is a mith.
Thanks for your wise commets in advance.
Sincerely,
MCaballero.
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