REO Price Drop During Best and Final.. huh?

[Frank Gucciardo]

Three weeks ago we put a 45K offer on a SFH REO (could be flip or B&H) that was listed at 64K and had been sitting on the market for around 90 days. Just heard back from the bank that there are multiple offers and they are looking for best and final. As we are going over our numbers and formulating our response I get a Zillow notification that the property has had a price drop to $49K... huh?

Is this common? Is this one hand of the REO process and the other not knowing what they are doing or is this some kind of strategy that the banks employ? I'm honestly scratching my head over here.

[Frank Gucciardo]

Deadline for best and final is 4pm today so we upped the offer to 48k, which is still 10k under our max purchase price. We'll see what happens.

In the meantime I'm close to getting an accepted offer on a B&H property with a 4/1.5 house and 2/1 cottage on the lot. All numbers point to it being a cash cow.

When it rains it pours, in a good way :-)