Foreclosures or Bank Owned Property
April 17, 2011
Are you thinking of making an offer on a bank owned property?Have you heard they are great deals?
The banks’ asking prices are usually below market value.I personally have made offers on bank owned homes, and represented clients who have made offers on these homes.All of my offers were in competition with multiple offers.The banks use the strategy much like that of an auction.They price the property below market value anticipating that buyers will join in the auction frenzy and drive the price up.There are two strategies that the banks use.1) Offer your best and final offer with no opportunity to raise your offer, or 2) Make a decent offer with the understanding from the bank’s broker that another higher offer might be entertained.A buyer needs this information going into the negotiation.
How do you determine how much to offer in a multiple offer situation?The asking price is usually the starting point, although if it has been on the market for a length of time, a lower price might be appropriate.Recent comparable sales for that particular neighborhood will help in determining whether or not the home or property is actually below market value.There are some websites that claim to have comparable values, but most often they are inaccurate.
I will be happy to provide you with comparable properties to help you determine the value of the property you are interested in.
I’ll e-mail you a current list of bank owned properties.I will not sell or share your e-mail address.