How much to offer on a REO?

**c5marine** · 06-10-2008, 11:18 AM

Need advice on offer for a REO.

Property has been on the market more then 260 days. Intial asking price was 299,000, then dropped to 279,000 and now they are asking 251,000 for it.

I know that every bank is different, etc, but would an offer at 160ish be reasonable?

What do you think?

Additional Info - Property is a 2 bed, 2 bath in the DC area. Condo.

Thanks.

**Mike Taylor** · 06-11-2008, 05:30 AM

I have no idea what property values in the DC area, but a 63% offer is not a reasonable offer even with a REO. In my experience, it is best to wait for the bank to drop their price rather than think you are going to get that much of a discount.

**jamesww** · 06-11-2008, 12:57 PM

Originally Posted by c5marine

Need advice on offer for a REO.

Property has been on the market more then 260 days. Intial asking price was 299,000, then dropped to 279,000 and now they are asking 251,000 for it.

I know that every bank is different, etc, but would an offer at 160ish be reasonable?

What do you think?

Additional Info - Property is a 2 bed, 2 bath in the DC area. Condo.

Thanks.

It is difficult to answer your question without knowlege of your market. It is typically the case that REOs are priced low in an effort to get multiple offers. I know from friends in the D.C. area that prices have been falling rather quickly in that area. This and the fact the bank has lowered the price several times tells me that they have been chasing the market down. This being the case I would assume that they are still priced a bit high do to the past trend. I think you can get away with offering say 20k below the current asking price but i don't think that the bank would even respond to your 160k offer. Offering this amount would be a waste of your time. Have comps. pulled by your agent and don't offer lower than 70% of the current market value if it is in good shape.

**nancyarora2020** · 07-01-2008, 05:39 AM

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