In today's market, many buyers are still eager to find a foreclosure bargain. Or that is what they think until they start searching. Soon, they learn that only savvy buyers will get the best deals.
Understanding how banks negotiate foreclosure deals is a must and it is useless to send low ball offers on bank owned homes that have been on the market for a few days. When the bank has not had the opportunity to expose the property in the marketplace long enough, they will be reluctant to take a low ball offer. Most banks are aggressive with their pricing but they won't give the property away.
Banks do not sell the property themselves. They are handled by their Asset Management Companies. These companies list the home for what they think the home is worth, and they receive guidelines about when to start reducing the price. It typically happens between 21 to 30 days.
If you want to send a low offer, just sit an wait and check back on the property in a few months to see if it is still for sale.
When it comes time to send an offer, do your homework to find out what the property is really worth based on what comparable homes in the area have SOLD for (not the ones for sale). When you come accross the perfect bargain, you will have little time to decide before everybody jumps in. Have your proof of funds ready in a form of bank statement or a fully approved letter (underwritten by your lender) to show them that you can close in 2 to 3 weeks to get their attention.
If you have more questions, please do not hesitate to Email us or contact us at 713-589-3234 for more information.