Making offers on REO's that the bank will accept

[Markus Onibokun]

Hello ppl of BiggerPockets! I have a question regarding purchasing bank owned properties. Anyone out there have experience purchasing REO's, and if so, do you typically offer the listed price, or below the listed price and by how much? I know there are a multitude of variables to consider in each situation. I'm just wondering if there's any "rules of thumb" that people have adopted or if there's any information I should be aware of from the banks persective and regarding their expectations about an offer that they would accept. I greatly appreciate any information or feedback given about this topic.

[Teresa F.]

Hi Markus, I generally do not pay the listed price. I look at the property, figure out what needs to be done, and make my offer. However, I also talk with the REO Agent about what the bank is looking for. Typically, I will make my offer, the agent will say "the bank won't accept that it is too low" and I will say fine, make me a counter. Once I have a counter, I know they are paying attention and we negotiate from there. Hope that helps, Teresa