How much is a bank willing to lose on a foreclosure?
After putting in numerous bids on reos and talking to other investors the general rule of thumb is 80% of FMV is about as low as you’ll get in this market.
Most banks are just sitting on properties letting them go to auction every two months until they finally sell..
What is the downside of buying a foreclosure?
Buying a foreclosed home is riskier than buying a home that’s owner-occupied. Some of the drawbacks to buying a foreclosed property include: … In some rare cases, banks may agree to do some repairs for you; however, you shouldn’t buy a foreclosed home if you don’t have a significant amount of cash to invest in repairs.
Is it bad to buy a foreclosed home?
Buying a foreclosed home can be a good idea if you have the financial cushion to absorb any potential problems. If you aren’t worried about there being potential issues or the cost to repair them, then buying a foreclosed property is likely a worthwhile investment for you.
How much should you offer on a foreclosure?
A general guideline is that you should never pay more than 70% of the property’s estimated market value. Here’s the deal: Instead of looking for cheap homes, you should look for good value in a foreclosure sale because the property’s true value is the total of renovations as well as the initial purchase price.
Can you negotiate price on a foreclosure?
Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. … Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.
How much of a discount can you get on a foreclosure?
32 percentList Price Discounts. The foreclosure website RealtyTrac has found that discounts on foreclosure homes have been more than 32 percent. However, a foreclosure home’s 32 percent discount is in comparison to a similar non-foreclosed home or what it sold for previously.