Curt Darragh - Associate Broker

Welcome to the wonderful world of Foreclosures. Although you don't mention the numbers (what the banks is asking and what you're looking to pay), I'm suprised they haven't been more negotiable also. Each property is different and the pricing as well. Based on the amount that was owed to the bank, condition of the property, costs to foreclose, etc... will determine how negotiable the deals will be. But if you want to put your best foot forward and get an offer accepted, I recommend the following:

Be prepared: have all your paperwork ready with your offer. If you're paying cash (always the best way to get an accepted offer) have proof of funds (a letter from your bank stating you have sufficient funds or a copy of a bank statement - be sure to black out your account numbers). If you're getting a mortgage, have a pre-approval already. Make sure its not expired and covers the amount of your offer (if you letter says you're approved for $150,000 don't offer $160,000, etc...)

Have as few conditions as your comfortable with. The more contingencies, the less likely you are to get an accepted offer.

If you have contingencies (mortgage commitment, inspection, attorney review, etc....) put deadlines on them. Example: contingent upon satisfactory home inspection to be completed within 5 business days of contract signing.

Make your offer reasonable, we all want a good deal, but if the houses in the area are selling for $150,000 and the property is in reasonable condition, don't offer $50,000. It's not going to happen. Not to say you have to offer $150,000 but make it reasonable.

Hope this helps.


Regards,

Curt Darragh - Wed Sep 16 2009, 08:58