Understanding how banks liquidate foreclosed property is essential if you want to purchase discounted properties.
Here some tips.
Banks are highly unlikely to consider lowball offers on propety that has been on the market a short time.
Banks can be very aggressive with their pricing and they are not going to give the properties away.
Asset management companies handle sales for banks. These companies price the foreclosed homes very close to the appraised value of the propety. Asset managers are given strict guidelines that stipulate how much of a reduction,if any, that they are allowed to apply during certain periods.
These guidelines can vary. Typically banks will not consider reducing the price of properties that have been for sale for less than 90 days.
Many agents know that if they list bank-owned houses for less than they are worth, this will grab potential buyers' attention and attract multiple offers. Once potential buyers are emotionally attached, bidding wars begin.
It pays to do your homework to find out what the property is really worth based on what comparable homes in that area have recently sold for.
When you come across a bargain property, you will have little time to decide before the vulture buyers show up. Be ready to act quickly while other potential buyers take their time to think about whether or not they want to make an offer.
"The early bird catches the worm," Thompson says. "If you take weeks to think about it, you are going to get into a multiple-offer situation." One needs to understand the art of moving swiftly, without moving recklessly.
We've all heard the old phrase "Cash is king". Real Estate purchasing is no exception. When buying a foreclosed property, there's no question that making a cash offer is one of the surest ways to get the best deals.
Buying property with a mortgage can take 30 to 60 days to close after the offer is accepted. The transaction goes quickly when the buyer pays cash. A cash buyer who can close in 10 days can certainly get the best deals.
Bigger down payments and bigger deposits really strengthen your offer. This tells the seller that you are committed to the property and will have no trouble closing with a mortgage purchase. Always remember that bank owned properties are sold as is.
We can help you to handle this transaction from the start to the end.