1. Find out if there are multiple offers.
2. Determine if the home is in move-in condition or it it needs significant repairs.
3. Check recent neighborhood sales going back 6 months.
4. Find out what the bank is willing to do regarding paying closing costs, etc.
5. ***MOST IMPORTANTLY*** Determine how much YOU want or need the specific home.
If you really want the home, be prepared to pay for it. If you like it, but are willing to gamble, make a lower offer based upon the research of recent sales.
Best of Luck,
Century 21 Tenace
Dont ask for anything extra like home warranties, surveys, etc.
Close as fast as possible.
Offer cash if you can.
Check utilities to see if they are on. If not see if you can get them turned on. If not it may be hard to inspect.
As far as prices, each is different.....some you may have to go over asking price, some will sell at 50% of the asking price, so you just have to analyze each one on it's own merits and condition.
Good luck with your home hunting. Please let me know if you have any other questions.
If you know the home is priced well and there could be multiple offers it may make sense to offer more than the asking price but that all depends on how much you want the home and a lot of other factors.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
email@example.com | http://www.AustinListed.com
Every situation is different. Not every foreclosure is priced below market. Hard to believe, but true. Banks, the government...who ever has the property wants the most they can get for it, as any seller would. Don't assume anything! Your best options are to get an experience agent to review the history of the home in question along with the market conditions in the area and they will advise on the best course of action.
Always be prepared by having your financing in order and staying on top of new listings via checking the local MLS or have a Realtor set up a web portal that will funnel new listing information your way.
Bernstein Realty, Inc.
Prudential California Realty
Beverly Hills, CA 90210
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
The best purchase offer for a foreclosed home includes:
1. an offer amount that is an accurate reflection of the current local market and condition of the home. Without specifics any opinion rendered on this would be pure "guess work."
2. seller defined accurately completed paperwork.
3. a letter of funding pre-approval or proof of funds letter (banks prefer cash offers for these homes)
4. a sizable deposit amount
5. minimal to NO contingencies beyond an inspection contingency
6. NO closing costs built into the agreement
There are no guarantees but by following these outlined guidelines you should be in the running.
Are you working with a Realtor yet ?
If not, or if you would just like a second opinion,
Check out my website and send me an e-mail with the property you are interested in.
You should have an experienced local Realtor answer your question. There will be many more questions that will come up in the purchase of a home and your Realtor is the best one to answer your questions for you.