Strategy when making offers for REO

[Allende Hernandez]

Hello folks,

I've been trying to buy an REO for a few weeks now and have placed several offers. In all cases the contract have been awarded to other buyers. Numbers don't lie so my offers have been for the price that works for me taking into account estimated repair costs and ARV.

Have in mind  that I am placing offers sight unseen since I am investing in a town about 3.5hrs from where I live. I go by the photos I can get and my realtor's view.  I have to admit I am also being conservative in my estimations to avoid overpaying.

My strategy so far is to get the property under contract and then go visit the property, conduct my inspection and adjust repair costs once I see it in person. if it falls into my previous numbers great, otherwise I'd pull out. Well...it isn't working :)

I wonder if offering  something closer to asking price to get the contract and then negotiating the price down after inspection is a better strategy or if that is considered too unethical.

What is your strategy for remote investing?

Thank you all in advance!