U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 09-27-2010, 04:53 PM
2 posts, read 2,058 times
Reputation: 10


On an investors website I read that an investor will offer 25% off of fair market minus the cost of repairs. Do a very thorough inspection of the property and talk with contractors on the costs of doing repairs. Perhaps get written estimates of kitchen remodels, etc....Create supporting documents for your offer including the comps that are in habitable condition, your inspection of items to be fixed (add pictures?); then show the quality of your financials and commitment to keep the property. Then submit it and let the chips fall where they may. I think that's better than offering 40% of asking just because you are aware of all these issues.
Reply With Quote Quick reply to this message

Old 09-27-2010, 05:51 PM
Location: Oro Valley AZ.
1,024 posts, read 2,318,776 times
Reputation: 1180
Asking for a 90 day close will probably kill any deal regardless of price. How long of an inspection period are you going to ask for?
Reply With Quote Quick reply to this message
Old 09-27-2010, 07:10 PM
3,402 posts, read 4,297,233 times
Reputation: 2403
I have bought several REO's as investments and it is my experience that they almost never come down much from the current listing price. And they have silly rules much of the time about how much they will lower the price in a given time period. What I have not seen is one as overpriced as the one you describe. I sounds like something I would pass on completely or just watch it for the price to go down.
Reply With Quote Quick reply to this message
Old 09-27-2010, 08:00 PM
28,430 posts, read 70,779,494 times
Reputation: 18364
Default What / where is the story here...

Trashed residential units, be they in condos or single family homes can often be restored to sellable condition remarkably cheaply so long as the damage is mostly cosmetic.

Sure, it might be annoying to deal with the mess of any angry previous resident, but as long as there are no structural issues, mold, sabotaged mechanical systems etc a reasonably skilled DIY flipper can knock out cosmetic issues in a few weeks.

Now if the building is such that plopping down a low-end but functional kitchen is going to hurt marketability maybe you have to increase your budget a bit, but if this is just a typical vandalism type re-do I can easily get the materials for under $8k.

If the asking price is inline with comps of signficantly better condition my gut says it is / was those comps that are /were underpriced. At a certain floor price you get all kinds of almost looney speculators. In some places, where units are selling for less than used cars, you get people kind of buying just because they have cash....
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 07:27 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top