Raj Kumar Ramkerath Licensed Realtor
Please tell a friend or two & visit my site @ your convenience!
Mark Jablon's answer is very accurate but I'd like to add to his response that if you decide to enter into a bidding situation--usually those of bank-owned (REO)--you could easily be bidding against yourself, I call that a "Blind Auction".
Say that a property is listed at $50K and you offer $55K to make sure you'll get it, even if the bank has received 5 other offers already (or maybe none at all other than yours for there is no way to prove that; you can only rely on their good words and we all know how decent banks are) and yours was the highest offer, the bank will still respond back to you saying that they have received multiple offers and will ask you to come back with your "best and final offer" -- this is when you could be bidding against yourself. But that's OK if you want that property real badly.
Most of the time, offers begin at the asking price and move up from there. The bank will always accept the highest and best offer on an REO property. Also, banks are willing to wait for offers that conform to the figures they have in mind. So just because the bank receives a contract from a buyer, the bank is under no obligation to accept that offer.
Bands understand that a lower listing price will arouse interest of investors, so the banks dangle lower prices on the market. Then they wait for bids that raise that price.
While cash is always best for REO purchases, in today's competitive market there are typically many offers above list price on REO properties, and these are also likely to be cash offers.
If you are a cash buyer and you hope to buy a Fort Lauderdale home for less than list price, you may find that you will do better by making an offer for a home that is controlled by the owner of the property. Provided you make a reasonable offer, you are likely to receive a response to your offer within 48 hours.
In today's tightening market, do not expect a seller concession of much more than 4-5%. So while your cash purchase may not make a huge difference in the price you pay, at least, with an owner, you probably won't have to pay more than the asking price for your new home.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
This property has just been sold in June 2012 for $62,000 and is not currently on the market for sale. It was a foreclosure listed at $59,900.
If you would like to have me search for a property for an immediate sale, please contact me.
Lynne Hale, Broker-Associate, CRS, e-Pro, CIPS
Century 21 Hansen Realty Inc
Per your question on Trulia >
Can I offer $50000 cash for this property, 1125 NE 16th Pl #211 and settle asap?
My funiture is in storage and I am ready to move in. call me or e mail email@example.com
Re: 1125 NE 16th Pl #211 (2/2) an REO was SOLD & CLOSED 06/14/12 for $62,000
Re: 1125 NE 16th Pl #208 (2/2) not a SS or REO is AVAILABLE Listed at $92,500
Contact me 'Lynne Knapp' (965) 647-5335 Cellular, or email me the best number and time to call you to chat!
Lynne Knapp, Realtor
ReMax Consultants Realty 1
Ft Lauderdale FL
contact me for more information...
Raj Kumar Ramkerath
Elite Investors Realty, LLC
Contact me by appointment only & please visit my site @ your earliest convenience!