Offering on a bank owned property from the MLS

[Max T.]

I'm interested in a listed property. The price is substantially lower than the neighborhood but it needs significant work. It is a small house - under 800 sq feet. I'm planning on subtracting the costs from the list price and starting my offer there. Will they go for it? Some of it? None of it?

The property is represented by an agent who specializes in bank-owned deals. How much flexibility do they have? The property has been on the market for over 100 days

List Price	55999
Floor joists (basement/1st level)are improperly notched, sagging, and unlevel. Replacement of all damaged joists. New subfloor. New finished floor.	8750
Full gut and finish - 1st floor bathroom. All new fixtures.	5000
Replace improper basement ductwork	3225
A/C coil and condenser	3200
Stairway into basement - bring up to code	2250
Washer/Gas Dryer (stacked)	1800
Paint throughout	1500
Transfer taxes	1200
New carpet - stairs and both bedrooms	1000
Gas water heater	800
new fridge	800
Exterior paint	800
Demo/creation of fridge location	725
Replace wood rot along roof line and cap with metal	700
Roof coating	700
new gas stove	600
Trim repair, doors for both closets, door for 2nd bedroom	500
Window blinds throughout	300
Minor siding repair - rear	200
New screens	150
Total costs	34200
Offer ALL CASH	21799

[Florian N.]

@Max T. What is the ARV and for how long is it on the market? I doubt the bank will go for 39% of the asking price, more to it if the listing is fairly newer, plus this is a REO and they are known to hold on the price often.

You should base your offer on the ARV, not on the asking price.

The last offer we made on a REO they straight out rejected it at 21% off asking price, but accepted at 85% off. This was on a property that was on the market for a bit over 100 days and the price already dropped 30% of initial.