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REO on market 80 days and has continually dropped every 3 weeks is 10-15% below list price fair

  • January 23 2011 - US
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Answers (4)

I agree with Sherry on many of her points.
There are many different factors that ultimately determine what the Seller is willing to take. I think one of the most determing factor is not only the Days on Market but also what the other average neighborhood REO's are experiencing. If the whole neighborhood is having longer than averages dom's then the bank wil take into consideration that the whole market in the neighborhood is down. 
If they keep reducing every 3 weeks then I would find a local buyers agent to work with that you can consult. I would time it about a week before the next reduction and then submit your offer for 15% below current list. This offer wouldnt look so bad to them considering they were about to reduce the home again. (If they were continuing with reducing every 3 weeks.)
I hope this helps somewhat.
Have a Blessed Day!

  • January 27 2011
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It depends. 
1) How much work does it need?
2) How are similar homes priced in the area?
3) How many REO's are in the same neighborhood?
4) What is the absorption rate index in that neighborhood.

What banks will take will depend on the bank:  how many properties they are holding on to;  how accurate the information is they are receiving from the listing agent as to the value of the property 

Some banks and some sellers are still in denial about their homes value.  The value of a property is what someone is willing to pay for it.  And that is most often determined by the VERY LOCAL market value of homes.  Consult a good real estate agent to get the latest information on your local area.  Then make and offer...put it in writing.  Worse thing that can happen is they say no!  There will be plenty of others!  Good luck!
  • January 27 2011
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It's unlikely the bank will go that low. Maybe a 6-8% offer in cash, but 10-15% will likely not fly with most bank programs.
  • January 24 2011
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aaaaaand....are you interested in buying it?
  • January 23 2011
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