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Old 09-27-2010, 04:53 PM
 
2 posts, read 2,058 times
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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.
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Old 09-27-2010, 05:51 PM
 
Location: Oro Valley AZ.
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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?
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Old 09-27-2010, 07:10 PM
 
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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.
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Old 09-27-2010, 08:00 PM
 
28,430 posts, read 70,779,494 times
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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....
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