Can I rebid on a prop with a LOWER bid?

Go for it, with the lower price offer! You may have nothing to lose. Congratulations on taking action with this potential deal. You want to ensure you have enough profit margin in the deal. If the house is worth $85k, I would consider offering less than the $75k. It all depends on what you want to do with this house? Do you want to live in it yourself?....keep as a rental unit?....or to fix and flip? Your exit strategy may determine the price you may want to pay. Sometimes if it is a home for you to live in, you tend to pay a little more than if it was only a rental.

In today's market, I was the same way when I found a deal. I would think about it all the time. My wife would always say if we do not get that deal others will come along....and they did. So find a few properties keep them on your radar and then strike with low offers. You never know when you'll hit that strike price of the Bank Asset Manager. Their motivation to sell a property can change on a daily basis. Good luck on all your deals. Believe and Achieve! Indiana-Joe

I appreciate your encouragement. I've been following your posts about your deal. Very inspiring. Way to 'Git er done! (sorry, was watching blue collar comedy last night) Seriously though, I was going to do this as a rental, but my backing, well, backed out. So now I'm looking as a re-assignment or double closing. Which i was wondering also..If I lock this up as cash offer contract with the intent of finding an investor to buy and find a regular person buyer, who needs a mortgage, is double closing my best option? I dont want to be in breach of contract if I re-assign.

It sounds like to me the bank seems a little desparate. To go from 135 to counter at 88.5 and now list at 95. It seems like they probally got alot of even lower offers than your original 75. Now for them to list at 95. I would submit a even lower offer somewhere around 50. The response should be where you want. Things can change dramatically everyday for banks in this market. At 95, they have to expect really low ball offers. If the homes are only selling in the area for 85, would 75 give you enough of a profit margin minus any expenses needed on your behalf? Great success......Lubertha

I would agree with Lubertha's comments and offer low. If you want to assign the deal there should be enough there for you to make a few dollars and the person you assign the deal to get good equity. Try to find about 10 other properties like this REO and track how long they are on the market (keep them on your radar). You can then make some very low offers on several and begin to get a feeling for what the market in your area is doing. Realtors usually have to do a monthly status report for each REO and then the bank may decide to lower their price. Thus, this could be a great time to submit an offer.

Also, as Dean and Matt Larson discuss, it is a numbers game and the more offers you make, the better chance you will get a deal done! While tracking properties and making offers you will learn a lot more to better prepare yourself for the next deal! Good luck on all your deals! Believe and Achieve! - Joe