How much do foreclosures in Syracuse and CNY ACTUALLY close at?

Question

I've begun looking into foreclosures as a possible avenue for BRRRR deals in my area but I know that the listed prices of foreclosures doesn't always reflect what the bank is willing to accept for a property. Is there a resource to find what a specific bank actually accepts properties at?
For example, if the bank tends to list houses at X price, but usually only accepts offers over 2X. It would give me a better idea for determining if it will cashflow and what I should be offering on these properties.

Alternatively if anyone has experience with foreclosures in the CNY or Syracuse area and has a general rule of thumb (if one exists) for making offers on foreclosure listings I'd love to hear about that as well.

Esmir O. · Answer

Justin,

Our team has tracked some stats on this but it constantly changes. We used to be able to average about 7-10% below asking, but this year it’s been impossible to track because there’s been so much competition on any decent deal that most of the time they go above asking. At the end of the day, the most important factors seem to be days on market and how much traffic. I usually have a chat with the sellers or listing agent about how much competition we’re against before putting in the offer. I agree with Chris, at the end of the day it’s what works for you.

For example, earlier this year I bought a property that had a total of 21 offers for $14,000 above asking. I did that because it was 3 doors down from my parents and was going to save a lot of time and money on labor. It worked out great for me.

Christopher Gifford · Answer

I would just offer what makes sense for you to make the deal work. If they except great if not move on and try another. I don't think there is a general rule for this.

Will Chamberlin · Answer

Will just chime in here and confirm the above info on Adolfi. He was managing the listing for a HUD foreclosure I bought in westvale a couple years ago. We offered about 10% below what is was listed for and closed about 25% under market value for a house that didn't need much work. Almost blew up when the gas was turned on due to an uncapped pipe but that is a story for another day. I would run the numbers and offer what works for you. If it gets rejected then keep running deals and offering until you make something happen. Not worth overpaying in the cuse since appreciation is slow to non-existent.

Mike Alt · Answer

Seconding John Adolfi is good source of info to reach out to for foreclosures.   From what he told me, banks generally won't look at anything less than a 10% discount off whatever they are asking.  They typically discount the prices 10% every month or so until someone buys it.  YMMV.  I've bid on a couple foreclosures but haven't landed any yet.

Ronald Starusnak · Answer

Justin, I have a good friend named John Adolfi. He is a broker in Phoenix, NY and has the contract to list all HUD properties which are properties that have conveyed over from foreclosure. Properties that are in actual foreclosure are not for sale unless you're working on a short sale. John has the absolute best source of information regarding the pricing and he will tell you exactly what number the seller will accept. There is a basic formula they use in conjunction with typical market trends.

Cory Finniss · Answer

this is the only time I use zillow. You should be able to find some comparable sales . And the ongov. Web site should give you some insight too. MR. GIFFORD has the correct answer . In simplest form.

Sam Shueh · Answer

You can use Zestimate as basis factoring In the condition based on your knowledge. Actually the bank wants to regroup their loss you also need to factor in the total lien to get a feel for what the lender has lost. The asset manager performance is measured based on how much he can wring out buyers.

Mark Costa · Answer

I will reiterate what Christopher said - run your numbers and make an offer that works for you. If the bank gets better offers you can spend the time asking how you can be more competitive in the future (e.g., running your own crew). If the bank does not get a better offer but turns your offer down, follow that property and re-submit the offer again.

I offered 50k for my first REO. The offer was rejected at least 3 times before the bank accepted it at that price. I never budged because I knew that number was going to work for me, and it did.

Justin Ward · Answer

Thanks for all the great responses guys! Bigger pockets forums, articles, and podcasts have been an amazing resource. And thanks for recommending John Adolfi, Ronald and Mike. I'll have to get ahold of him in the coming weeks. Right now I'm working on getting my financing situated and creating a tax strategy.

Justin Ward · Answer

Thanks Christopher and Esmir. I wasn't holding out much hope for a resource with accurate data on it but I had to ask. Esmir's info, even if it is no longer consistent, is still a good low-end for me to come up with some range estimates. 7-10% below asking sounds great to me, hopefully there are still some of those left to grab. I'm thinking a cash offer in the winter months might help me get closer to those numbers.

How much do foreclosures in Syracuse and CNY ACTUALLY close at?

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