I was at a closing the other day and saw something totally stupid. I watched a new investor in the closing attorney’s office turn into a jackass right in front of my eyes. I mean he had big ears pop out of his head and a long tail shoot out. Really, he just morphed into a living breathing jackass.
Generally, the banks set a price on properties too high because they are in the business of lending money, not real estate, and as a result often they do not have a good understanding of the real estate market. Also, most banks are large, they have specific policies on reducing the price on a house based on how long it has been on the market.
Let’s say you are looking at a REO for which they want 25k and they have just come down from 29k. The bank apparently did not really look at the property because it isn’t worth the asking price. The only good part of the house is the structure; the house would have to be gutted to rehab. You don’t want to do it yourself but you would buy it to flip if your low ball offer on it got accepted.
There are times in your life when in order to change your future you have to make decisions that others may question.