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The REO's that I have closed on recently went close to list with multiple offers but did not go over list.
It is very area dependent as Chuckity pointed out.
It is too hard to give advice with limited information.
The only advice I could give at this point is that if you do not feel comfortable doing it, don't do it.
In my area we have some Realtors® handling bank owned properties that are artificially lower than they should be so as to encourage multiple bids with all going over the list price and to attract buyers/calls while the listing is still active. It's a game. Make sure you have a good coach in your corner.
There is a REO property listed at $274,900. We put in an offer for that amount but the home went into contract with a cash buyer who later pulled out of the deal. The listing price dropped to $261,500. Our realtor advised us to keep our bid at the original listing price offer because there are cash buyers who put in an offer of $270,000? Can someone share some knowledge as to whether or not we should have taken the realtor's advice. Thanks!
All depends on your local bank owned market dynamics. If there is a lot of competition, then bidding higher than list may be a good move.
If your agent is certain that there is an existing cash offer of $270K, then going higher may be the only way to get it. Of course, you need to decide if the property is worth it to you. Will it appraise at the higher price for your financing?
Iv' bought several and it has been my experience that they are pretty much as is. If you do an inspection and find something major to be fixed it is best to ask for a reduction in price rather than a repair. I did this once in the case of a septic tank issue and got a large sum taken off the original purchase price. Small repairs you shouldn't even ask.
Before you place an offer on a bank owned property is it always a good idea to put together a market analysis for the property.
Yes.
Or did you mean "it is" instead of "is it"?
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