Made an offer on a bank owned propoerty

[Matt Sturm]

Hi-  I've made an offer on a bank owned property.  I was then asked to give my highest, best offer.  I provided that (only 20k away from their asking price)  I just received a notice that they countered at 1k less than their asking price.  Is this common on bank owned deals?

The deal still works at their counter, but I don't want to pay more thank I have to.  

[William Hochstedler]

Welcome to BiggerPockets.  I expect we'll see more traffic in Foreclosures.

In general, banks are great to work with because they don't have any emotional stake in the transaction.  It is 100% based on net to seller.  They don't care about whether you are cash or getting a loan, amount of earnest money (as long as it meets their guidelines), etc.

So any time you are contemplating purchasing an REO (a bank term for Real Estate Owned to differentiate between a distressed borrower in the foreclosure process), focus on maximizing the amount that the bank will get after fees, etc.

Typically they won't go back and forth.  Their counter is the amount you will have to be at to get the deal.  That being said, you can wait and try again in a week or so with your original offer.  You might get a different answer.

My general strategy with bank owned properties is to stick to your number and keep making the same offer until they accept or sell it to someone else for more money than your evaluation justifies.  If you don't get this one, try again on the next one.  There will be more.

Good luck.