REO offer Help (Structure and Offer)

[Sean Sandoval]

I have a property that I am looking at. I am looking to both Live in and eventually flip several years down the road. It is in a neighborhood that I am trying to invest in. I am dealing with the REO agent directly. The home has only been on the market for a week. The bank is asking $9,900. I know that there have been a few offers made such as $6500 and $7200, both of wich the bank has countered at $9,900 asking price.

I have inspected the home and know it has issues, but I can personally address them.  I have extensive construction experience and HVAC Certification.  One major concern is the AC Unit.  Someone has already attempted to steal it.  They cut all the power lines.  This is a year old $2000 unit.  One of the main reasons I am willing to offer what I am offering.  The Furnace is new also.  Anyway this is my offer please advise me as to what I should change to make the offer more desirable to the bank and hopefully lock down this deal, or tell me what is wrong with my offer.  I am trying to show them how insecure the property is also.  It is as follows.

Offer is all cash offer of $9500 with seller paying closing costs. Seller can use title company of their choice. Close within 14 days. Seller will install a HVAC Cage to secure the HVAC unit that has already been compromised and all wiring has already been cut from unit, or allow buyer access to install HVAC Cage. 5 day inspection period, most of which is to make sure AC Unit is secure. This offer is valid ONLY IF AC UNIT IS PRESENT AT CLOSING.

Thanks for any advice!

[Wayne Brooks]

They won't install the cage, and generally won't let you do it.  If the ac unit is gone before closing, you can ask for a credit or walk, generally with your EM back.  Understand that any closing costs you shift to them, will lower the Net value of your offer.