REO's usually priced at 20% below ARV ?
I've been running numbers on houses on various houses that are REO/foreclosures and was wondering if there is a certain percent ( Below ) a houses ARV that REO's are usually listed at. For instance...... The houses on HomePath, if a house is listed on there for say $80,000 , is it safe to assume that that house is listed at a price that is 20% below it's ARV ? So when the house is appraised at it's current state, the likely apprasial should come in at around $100,000 for ARV ? And if using $100,000 as the ARV , the 70% rule would put you at an offer price of around $$70,000 minus Repair/Rehab costs ? Thanks so much everyone, really appreciate the help and Breakdown of the way to calculate/Breakdown an REO's listing - Michael