REO Offer Acceptance

[Ted Wilcox]

I look at REOs in my neighborhood. In the MLS the banks list them very near market value, it seems. As an example, there is a house listed at $550,000. The ARV is probably less than that, lets say $500,000. Using the 70% rule, and a 10% rule for rehab and costs, I get the following numbers:

ARV: 500,000
Rehab: 50,000
Holding and selling costs: 50,000
70% of ARV: 350,000
Low Bid: 250,000
Highest Bid: 300,000

Do the banks really accept an offer of 300,000 on a house they have listed at 550,000?

Should I just wait for better numbers or just throw the noodle at the wall and see what happens?

Do you always go in at the lowest bid and then send in a new one if it is rejected or go somewhere between the high and low bid?

Ted