Unfinished REO

[Erik Fredmonsky]

Hello, I've lurked for a few and have found much needed information on this site. It's been extremely helpful. I've had a recent interest in investing in properties and now that I find myself having my own house listed I have run into a few situations that I believe would be a good investment for me.

I'd like to explain my current scenario to you and would welcome and appreciate any feedback for the inexperienced. I recently found an unfinished home that a builder lost. I would like to buy this house to move in. The bank bought the house back for $200K 3.5 months ago. The house is not listed yet but the asset management company referred me to the listing agent. I have seen the house a few times and have recently had two contractors give me estimates on finishing the house (heating, plumbing, paint, carpet, cabinets, fixtures, etc, etc). The total cost to finish is about 60K the way I would like it.

I believe the house is worth around $300K. I'm trying to avoid this house being listed. I talked to a friend who deals in preforeclosure and he recommend that I place an offer to the listing agent with my own realtor. I guess the reasoning is to get the first bid in the door so they respond to me first before responding to any future bids when the house is listed. The house is past the redemption period and I'm assuming will shortly have a market value placed on it but it has not already.

So my questions are this:

A. Should I make a bid before the bank/realtor release a market price? Or is this a waste of time?
B. Does it make a difference if I go through the listing agent or get my own agent to deal with him?
C. Do you think due to the fact that the house never passed final inspecton and was never finished I could get a better "price" for this house?
D. When I decide to make an offer, what should I include? Comparables, pre-qualification from bank, etc?

Any help would be appreciated. Thanks in advanc!!!!