Is this offer realistic for a REO?

[Mickey Harrison]

So I've never bought a REO but there's one that's been for sale for about 3-4 months where I recently purchased a SFH rental.

The REO
Listed @ 90k
according to records this is what seller owed when foreclosed on. (i looked them up myself)

My property
Purchased in Sept for 62.5k

The REO is similar to mine but from what I can see the exterior it's not as well kept -it's wood/vinyl siding looks dingy- I have stucco holding color well.
-The roof is a 20yr & looks old - I have 35yr that's 6 years old

I haven't had a chance to see the inside since the REO agent hasn't called me back.

*My Thoughts*
I Def don't think the house is worth 90k since I paid 62.5. I was thinking about making an all cash offer of 30-35k considering the exterior and fig the asset manager might be motivated since it's end of year. The offer would be contingent on inspections of course.

For the REO buyers out there is this offer even worth making or would it just be laughed at? what would you consider doing?

[J Scott]

I know a lot of people will tell you to go for it, and see what happens. But, realistically, you'll never get this property anywhere near your offer price unless/until the the list price is dropped several times.

Why would an asset manager sell a property at 60% off list price? If he were that desperate to get rid of it, he'd drop the price by 20% and see if he got interest. If not, he'd drop the price again by 20% and see if he got interest. He'd rather keep doing that then just accept an offer at 40% of list off the bat.

Not saying this to discourage you, but hopefully save you some time and effort...if you think you can offer closing to 60% of list price -- and if the property has been on the market for several months already -- you might want to give it a (long-)shot, but not if your max price is only $35K.