Florida Bank-Owned Properties Priced High?

[Matthew B.]

Hello,

This is my first post on this site. I love it!

I've recently been submitting offers on bank-owned properties/REOs that I've found using the MLS. I've noticed that most of these properties are priced extremely high for the amount of repairs they need.

For example, I just put in an offer today on a house that needs approximately $25,000-$30,000 worth of repairs to make it livable. New roof, new kitchen, new bathrooms, air conditioning, etc. It basically needs to be gutted and redone. Now this is a 3 bedroom, 2 bath in an area where these homes are selling for around $55,000-$60,000 when they are in average condition. I mean, a fully remodeled home in a better area on a lake recently sold for $80,000. HSBC has this particular home listed at $59,900.

So today I submitted an offer for $22,500. I figure after $30,000 of rehab it should appraise for about $60,000, and I can rent it for $800-$850 per month. I'd be willing to pay up to $27,000-$29,000 for this house, but I figure $22,500 is a good starting point. The worst that can happen is they counter or say no.

After I submitted the offer, the listing agent calls me, screaming at me that I'm a joke and telling me not to ever sling that kind of mud at her again (her words!). As she was telling me what she thought of me and my real estate license, I clicked send on my second email to her containing an offer on another one of her REO listings. I figured it couldn't get worse.

So, am I out of line here? Anyone else having these types of experiences? I realize banks are usually only going to accept offers at 95-100% of asking price. But what about when I can't find a comparable sold property that justifies their price? Who's doing these BPOs? I would literally lose money if I paid 90% for this house.

Thanks guys!