OfflineI made an offer on a VA foreclosure last week. It was listed at 77,900. I offered 67,900. They countered today at 77,000. Not much of a counteroffer! But I read that the first counteroffer on an REO is often not much off of the listing price. Honestly, even if I paid full listing price, it is still a great deal for this neighborhood! Would you keep countering and if so, by how much?
__________________
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Without knowing the numbers, I'm not sure what to tell you on the counter, but make sure you account for the amount you want to make in profit, the repairs it will need, acquisition and holding costs in the amount you are going to counter at. Then go a little lower so they can counter back again.
They budged $900, I'd say go back at $68,800 without knowing the #s.
Thanks, Tammy! We planned to either fix and flip or double close on this one. Similar properties are listed around $140K, and this property would need about 25-30K to get to that value. Also, we asked for a 45 day close....is that enough time to double close with a retail buyer? As-is, it should retail for no less than 95K.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
If you are double closing, I would try to market other investors, because a retail buyer expects things all fixed up and its much harder to sell to a retail buyer.
Have you checked out the threads on trusts? That's a way to do a double closing without doing a double closing (no transactional funding costs). One is by KimmyJ. There's another one by me with Protect your assets in the title, but It was about trusts in general and then went to the side of buying REOs in a trust. Check them out!
Don't feel bad, we had a REO that was listed at 24,300, we offered 19,000 & they countered at 23,900 ... WOW a big $ 400 off, but there were 3 or 4 other
offers waiting in the wings, so we took it. The house only around 4K in rehab & then market will be 45K to 50K.