Writing Offers on Bank Owned Real Estate
Posted Apr 10, 2008 @ 1:11 pm, Viewed by 507 Visitors, Read 527 Times.With so much Bank Owned real estate on the market, us Realtors are starting to see certain "patterns" play out in term of how the Banks are pricing them. What I've been noticing is that they are not hesitating as much to lower the price if it's been sitting for a while. I often talk to buyers who have their eye on a bank owned property, but want to wait until they reduce it further before they write an offer. However, in most cases as soon as the Bank reduces the price to a very attractive one, multiple offers come in, and now all of a sudden you are in competition.
In some situations, it may be a better strategy to go ahead and write an under-asking price offer, cutting ahead of the competition that may jump out once the price is officially reduced. As long as the offer is reasonable, there is a good chance it will be accepted, or at least countered. On the other hand, waiting until the Bank is forced to reduce it to a irresistable price will most likely mean that you will be competing with other buyers once you decide to submit an offer.
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Darhlene
You are so on target, you should consider submitting this suggestion to NAR.
I tottaly agree. We have a great lake front foreclosure that started at $1,000,000 then quickly dropped to $969,000. We are getting a lot of serious lookers that ask me what the bank will take. I just have to encourage them to put something in writing.
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Hamid Grinage is a Realtor with the Grand Lake office of Prudential California Realty in Oakland. He is E-Certified, a graduate of Sonoma State University, and a member of the National, California and Oakland Association of Realtors.
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I have a buyer that just viewed a foreclosed home that was originally priced at $280,000 and has been reduced to $244,900. I might be wrong, but I'm doubtful if even with this reduction people are scrambling to make an offer, even though the home wasn't in as bad shape as I expected it to be. My buyer is definitely interested but water coming into the crawl has her worried and she's going to find someone to give her an idea and estimate as to how much this would cost to fix. There is also the fear of mold remediation. Not everyone would have noticed this but my lady crawled into the area and this is the only way she noticed the problem. We shall see how this progresses as she still wants to offer lower than asking price.