EVERY foreclosure I've seen for sale in the past two years has had multiple offers. So even though you counsel your client to submit a full price offer, the lender inevitably sends everyones offer back and asks for the best and highest offer. I remember an oceanfront condo that my client was bidding on. He really wanted it bad, so he went all out and submitted an offer for $8,000 above asking price. I was confident we'd win this one! We waited, and waited, and several days passed and I called the listing agent to see why they had not contacted me. It turns out someone wanted it more and offered $20,000 more...CASH!
Short sales used to be the best deal around, however now the lenders are countering for higher price with such regularity you can set your watch by them. And they are bypassing the natural flow of the market. If a property is lingering the best way to breathe new life into it is by lowering the price. Well, when an offer does come in, even though the listing agent may have reduced the price to obtain an offer, the lender may counter as an even higher price leaving us all sratching our heads n disbelief.
In the end, there is nothing like a motivated seller to willingly lower their price. I'll take a regular sale where the family is going through a divorce or relocating over a distressed sale anyday!
Joseph Schutz is a Realtor and Certified Distressed Property Expert working through EXIT Ryan Scott Realty's Wilton Drive office in Wilton Manors, FL 954-461-7895
You will want to be sure to work with an agent who is very experienced with comparable property values. You not only want to consider the initial sales price, but also the closing cost, carrying costs and improvement costs the property will require when comparing it to the value of other properties. You will also want to consider the neighborhood sales trends including number of foreclosures and short sales in the neighborhood in the last 6 months to 1 year. Another item of strong importance in real estate investing is the time you will own the property, whether renting or flipping, and the property's liquidity should your financial picture change.
I have worked extensively with such investors, and typically you are seeking to purchase a property based a price per square foot depending on the improvements needed. Traditionally short sales and foreclosures have been ideal for this scenario, but unfortunately, the deep discounts once offered are hard to find unless the property is strongly distressed.
As I could go on for hours on this subject, I will stop with this basic information for you to consider. Should you want to further discuss such investment potential and it's benefits as well as risk, please feel free to give me a call. Tomi Kuczynski 305-904-2493.
I live very close to Wilton Manors and would be happy to discuss oppurtunities in Wilton Manor's with you. Please email me at firstname.lastname@example.org or by Cell #(954) 648-7334.
Gunseli (Jen) Babacan
Galleria International Realty