Posted by Berno on June 09, 2006 at 16:17:08:
I agree with Gerald. In my area a nice REO home will sell through a realtor at the same price it would have if Joe and Sue Smith owned it. If I find an REO that has been on the market a while, or needs a bunch of TLC, I’ll go in and shoot an offer pulled from air. If I remember correctly, I have made offers as low as 31% of list price, which happened to be less than 25% what the bank loaned on it.
My rule (which changes at times!) is to do my research and come up with a max price I am willing to pay. My first offer is obviously lower than that…low enough that I should end up where I want to. I have gotten some great deals this way and I have also missed out on a great house where I wouldn’t pay over 200k and the lowest they went was $201,500. Decide what it’s worth to you, MAX and go from there. The % isn’t really that important.