Foreclosure shopping today

[Danny Day]

Just spent the day looking at 6-7 foreclosures I've found online.

Some looked good, and some looked over valued. I called the realtor handling the sale and asked for the asking price, to make sure my prices added up with what I had found online.

I had a few questions here:

1. If the bank has a set price of $90,000, and the comps in the neighborhood are at $100,000, can you leverage this against the banks? Saying the home is over valued and offer less? Or are they not likely to budge?

2. I spoke with a realtor today, who asked what kind of deals I was interested in for their mailing list. I told her fix & flip deals, and she said those really don't exist right now? What does she mean by this...?

3. Does anyone have a contractor agreement they wouldn't mind posting up

Thanks

Danny
:cool:

[J Scott]

Originally posted by Danny Day:

1. If the bank has a set price of $90,000, and the comps in the neighborhood are at $100,000, can you leverage this against the banks? Saying the home is over valued and offer less? Or are they not likely to budge?

You can certainly negotiate with the bank, and they certainly may budge, but it won't have anything to do with your estimation of the value. The bank has already received a BPO (watered-down appraisal) from the agent, and will take that information as more reliable than yours (though it may not be).

The willingness of the bank to negotiate will depend on the specific circumstances of the property -- how long it's been on the market, it's condition, the amount of interest, etc.

2. I spoke with a realtor today, who asked what kind of deals I was interested in for their mailing list. I told her fix & flip deals, and she said those really don't exist right now? What does she mean by this...?

What she means is that she isn't familiar with investing and doesn't know anyone who is currently doing flips. That's most likely her ignorance of what's going on shining through...

3. Does anyone have a contractor agreement they wouldn't mind posting up

Here you go:

http://www.biggerpockets.com/renewsblog/2010/02/17/whats-in-a-contract-contractors-rehabbing-real-estate/