| Market conditions are currently in favor of buyers but | | | | obtain financing, a pre approved letter and a higher |
| it does not mean buyers are having an easy time | | | | offer just might do the trick. |
| getting their offers accepted. In fact, the competition | | | | 4. Do Not Ask Bank to Pay for Repairs - most sellers |
| has become quite tough for buyers of bank owned | | | | will not offer to pay for repairs or even inspection so |
| homes because of the fact that these foreclosed | | | | do not waste your time asking. Instead, you can |
| properties are under priced. | | | | bring up the subject after the home inspection report |
| Multiple offers are common especially for prime repo | | | | has been completed, the problems were identified |
| homes. For this reason, you must make sure your | | | | and the bank has accepted your offer. You will need |
| offer stands out above the rest. Consider the | | | | to renegotiate these issues. |
| following tips. | | | | 5. Request for Shorter Inspection Period - it is |
| 1. Obtain Property History - this would help you | | | | important you come across as a serious buyer so |
| determine how much the purchase price was and | | | | when it comes to the inspections, you can request it |
| compare it the selling price. You can make an offer | | | | to be done in 10 days if the other interested buyers |
| that is midway between the foreclosure sale price | | | | are asking for 15 days. |
| and the mortgage balance. If the home is | | | | 6. Split Fees - sellers will most likely choose your bid if |
| underpriced, the bank usually accepts such an offer. | | | | you offer to shoulder half of the transfer or escrow |
| 2. Compare Market Values - look at similar bank | | | | fees. |
| owned homes which have been sold in the past | | | | 7. Check Appraisal - your offer should also be in sync |
| three months and find out how much the winning bid | | | | with the appraisal value, which should be close to the |
| was. Usually, buyers make an offer based on the list | | | | selling price. Low appraisals sometimes arise due to |
| price and not the current value of the property in the | | | | the multiple offers but the banks will be the one |
| market. You might also want to check out pending | | | | dealing with such situation. |
| sales as well as active listings to give you an idea of | | | | By following these tips, you are in a much better |
| how much you should offer for the property. | | | | position to own one of these bank owned homes. |
| 3. Determine Number of Buyers - you should | | | | Just make sure you set aside money for repairs |
| definitely find out the number of offers the seller has | | | | since these properties will require much rehabilitation |
| already received. If there are none, you can offer | | | | after going through a lot in the past months. Go over |
| less and the seller will most likely accept it. If there | | | | your finances one more time to be sure that you can |
| are several offers, you should step up your game by | | | | really afford the bank foreclosure. |
| offering to pay in cash. For those of you who will | | | | |