First Step to Getting “The Deal”
It’s a common misconception that foreclosures are a “good deal”. With out discounting public perception that foreclosures are notoriously the “cheapest house on the block”, the banks aren’t neccesarily looking at their huge inventory as a fire sale. What’s a consumer to think? Well, there is strategy behind putting in an offer to these over worked and at times very frustrated banks and the asset managers whom are making the decisions on which offers to even consider. In these series, we’ll go over smart strategy and down right patience with the behind the scenes of the foreclosed home purchase.
Bigger Doesn’t Always mean Better
As tempting as overbidding may be, don’t get overzelosu, you could run into appraisal problems down the road and the deal could back fire.
Don’t be a Low-Ball Larry
Although this is a buyers market, don’t be tempted to write a very low over, especially if the property just came on the market. Remember banks are just as willing to reject an offer. Counter offers aren’t an obligation.
Constant Communication
Make sure your agent is speaking to the listing agent in case there are any new issues or time frames. You don’t want your paperwork to be lost amongst the piles and piles of offers.
Waiting Is the Hardest Part
Doesn’t it always feel like there isn’t something for nothing? When deciding to purchase a bank owned property, you must be patient. In a traditional sale, buyers are used to getting an answer from the seller in a few days or less. When dealing with the bank, it can take up to a week (or more). Be patient, you and everyone else are feeling the same way. It’s normal to be frustrated, just know its part of this process.
Silver Lining
Good news is you can get a good deal, or as we say in real estate, you got the “cheapest house on the block”. There are still good values out there they don’t require a ton of work just to make it liveable. And you may just have those bragging rights when the economy rebounds and the real estate market is back on its feet.
Tools of the Trade
Always have a great search engine so you can get updates everyday and know which properties will be the best fit for you. One suggestion is www.LAforeclosureFinder.com. Happy Bargain Hunting!
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