…Here’s another BIG tip we figured out from trial and error (and a little help from our broker friends)-
…ALWAYS COUNTER THE BANK’S COUNTER!
3 REO brokers have now told us this, and it works. Just don’t forget from “Buying Tip #1″ you need to be in the ballpark before this tip applies…here’s an example:
Property worth about $180,000 fixed up. It’s boarded up and in bad shape, offered at $139,000 for months and not moving. After a few little insignificant price drops of $5,000 or $6,000, they drop it all the way to $90,000-
…there’s your cue, DO NOT HESITATE.
You offer $70,000. Bank counters at $85,000- your action?…counter back at either same price of $70,000, or throw a token $1,000 for a counter of $71,000…stick to you guns – they will most likely take it!
** By the way, along the same lines rather than counter, the bank will often come back and request your “Highest and Best Price (because of course they have “multiple offers”…same principle, stick to your guns! the “multiple offers” are usually very unqualifed buyers).
…banks try to discourage low offers with various techniques, but they can’t stop the inevitable.
…so stay diligent when making offers or you’ll get discouraged and quit when the bank may be closer in price than you think. Again, they are desperate and using all kinds of goofy tactics they must all learn at the
same industry conferences…our goal is to learn their playbook.
If they barely budge off their price the first time and you know the property is a dog (doesn’t apply as much to a perfect 4/2 in a good neighborhood), don’t fall for it!….the tide continues to turn every day, so stay relentless in your offer making.
REO Tip#2- Always counter the counter once, even if they counter at closeto full price. This especially applies to the big “REOs auctions”…Bruce Norris offered on six properties- he was outbid on 3, and was the highest bidder on 3. The bank originally rejected his offers, then they countered tens of thousands higher. Bruce stuck to his guns and didn’t come up a penny…guess what?…yup, they took ‘em anyway.
Be Happy and Prosper!
Kurtis and Cindy Squyres
Kurtis and Cindy Squyres
http://www.FarBelowMarket.com
http://www.FlipForeclosuresForProfit.com
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