Bank owned home - Posted by Randy

Real Estate Investing
1

Posted by jack E on July 10, 2008 at 13:59:56:

You first need to determine fairly accurately how much the repairs will cost. Then you need to get comparables of sales in the immdeiate area for same size homes, number of bedrooms, baths, sq ft, etc. A realtor can get this for you or there are internet sites that have them or pay services. Then I would offer no more than 60% of after repair value and see what answer you get.

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Bank owned home - Posted by Randy

Posted by Randy on July 09, 2008 at 16:07:29:

My wife and I are looking for our first home, we found one that is bank owned and looked at it. Not bad mostly cosmetic work that needs to be done. My question is how do I negotiate with them? This home is north of Detroit in a fairly nice subdivision. 1900 square ft. 4bd,2ba the bank is asking 77900. The other part of this ? is what would be a good offer to open negotiations? Thanks in advance for any help…

3

Re: Bank owned home - Posted by Jeremy Burgess

Posted by Jeremy Burgess on July 17, 2008 at 17:59:46:

Hi Randy,

I do all of my investing in Detroit. If this is a bank owned property and you have all cash, I would write an offer you were embarrassed to make. I personally do my offers at 27% of asking price.

However, before you submit an offer, lets go over how to do it right.

  1. Get a buyers agent (listing agents for REO’s don’t care. They just list. Buyers agents get you a great deal.)
  2. Show you can buy the house. If you are buying with cash, all you need is your most recent bank statement. If you are buying with a loan, get preapproved and submit your preapproval letter. If the house won’t pass an appraisal, find hard money and get approved.
  3. Submit your offer with a decent earnest money deposit. I know many “gurus” say you can use $50 or $100 emd but put yourself in the banks shoes. Show you are serious about the deal. I recommend at least $1,000.
  4. Make sure you have a 5 day (at least) inspection clause and pay for a professional inspection. You never know.

Good luck and remember if they say no or they don’t negotiate, there are plenty more. Write tons of offers and you will get a smokin deal.

Jeremy Burgess
The Detroit Market Expert
www.WholesaleMi.com
www.DetroitInvestmentSecrets.com
www.UrbanDetroitOnline.com