Buy Foreclosures – Tops Tips to Save Money
It is not uncommon when you go to buy foreclosures to find out that you are up against 20 competitors. In some markets the bank will throw out all but two offers and ask the two of these bidders to resubmit in what is called “Highest and Final” offer. In some cases they are going to accept the highest bid on the first go.
On this page we discuss some top tips on how to save money whenever you buy foreclosures
In many cases the list price is not an accurate guide to the value of the home. It truly is the market value that always determines the price. Listed here are three tips on how to assess market value.
Comparable Sales
Consider the last three months sales in the neighbourhood to find out what the reo may be valued at. Try and match number of bedrooms,baths,square footage and condition
Pending Sales
Ask a listing agent to determine how many have got their listed offer in the neighbourhood
Active Listings
Active listings are what other buyers probably will use to set a price.
You have to find out the number of offers on the foreclosed home. If there are not any offers you can be safe in asking for under list price. However if there are a lot more than two offers you will most likely need to ask for more than the asking price.
If there are more than 20 offers you will need to consider a cash offer. Banks love cash offers. A financed offer needs to be higher than a cash offer in order to succeed.
You need to get pre-approved from your bank that owns the foreclosure.Banks do not trust other lender pre-approvals but trust their own departments.
Offer to split escrow and transfer fees.
Whenever you buy foreclosure it is important to think about all the points above. What can be offered at 50% of market value may not appear a bargain as you first thought.
Tags: Foreclosures, Real Estate, Sales
