We're working with REOs in Central Virginia, and keep running into the same situations w/our offers.
We're working with REOs from our RE agents' MLS listings as well as with community banks. We're often finding that the sellers won’t consider offers unless they’re at or near list price (3% below), even on older listings (90+ DOM). These banks aren’t motivated to deal, even with "reasonable" offers. There's too much time and paperwork involved for them to be so laid back.
We’re working w/SFH to $150K. Most REOs that we’ve gotten through our RE agents or community banks don’t have large spreads between list price and FMV, esp since aver selling prices are down. The ones that do have great spreads need lots of work, so repair costs eat up the profit margin. Have even had cash offers turned down since some banks wanted owner-occupant offers only - no investors.
We're working w/other seller types, but most leads are coming from REOs. Any suggestions on how to tackle this?