What should I offer bank owned?

[Billy Heinrich]

Good morning ! This is a great place I am enjoying all the information. Thank you all for sharing.

There is a cash only bank owned property that I am interested in. I have a propstream 7 day free trial and it says it is worth 95k.

Looks like the bank has 32k into it. They listed at 90k.  It has been on the market for 60 days. 

It is in a very bad area. The neighbor has a lot of junk in there yard and it looks like a car wreckage yard. This puts me off. The positive is.. it is a double lot so the neighbor is  2 lots away.

There is work to be done to it but I can do that myself. I feel like 10k is enough to get it in beautiful shape..if I do the work myself.

I felt like offering 45k to 50k? Is this realistic offer?

[Brad S.]

You should offer what ever $ you think will make sense for YOU. What the bank, or any Seller, is asking (or needs), is secondary and should only matter in how to structure the deal or present an offer. Remember, it is currently THEIR problem (responsibility, etc), when you buy it is becomes YOUR problem. So, how much do YOU want to pay to take on THEIR problem (risk, work, potential gain, etc), as YOUR own!

Everything is realistic if it works for your goals, but some sellers are unrealistic, until some time as passed. In the past, I have told people about a few good deals I have gotten, and some ask, "How did you get it, or How did you get them to agree to that," and my answer is, "I asked."

But, if you want to feel more confident asking/offering a reasonable price (reasonable to you) for a potential deal, feel free to overpay for the deal, take on the risk, and eventually sell at a loss, and realize that YOUR goals are more important. My guess is you will feel more empowered to ask for what you want first, and consider what they want second, on future deals.

Most successful RE investors I know, have lost on at least 1 deal, but have received priceless lessons, as a result.

.....also, please don't rely solely on a websites value estimate, unless you want a priceless lesson.