Ute's answer is very good and I agree with all she has to say.
I want to add that Really Good Bargains will attract Multiple Offers from Home Buyers AND Investors.
If you really like the Property, and, if you need 6% Seller's Concessions, be sure to increase the Offer by the 6% and a little bit more. Otherwise, that other Buye/Investor, with the same desires, will outbid you!
I have had many of the offers that my Buyer Clients have submitted, come in second, because some other buyer wanted the property more than my clients wanted the property. Needless to say, "Want" is defined in the Offer Price!
Best of luck to you!
Steven P. Wood, Realtor
Palm Coast Realty, Inc,
12300 Alt. A1A, Suite 209A
Palm Beach Gardens, FL 33410
Direct: 1-800-298-2566 or 703-851-6535
I am at Your Service for ALL of Your Real Estate Needs, Specializing in Jupiter, Juno Beach, Tequesta and Palm Beach Gardens !!!
Is called Seller Equity, Some people in trouble do to loss of job, or divorce are forced to sell and cannot make payments on their own, They would rather be aggressive in selling their home and salvage their credit worthiness.
In addition, Bank on REO or short sales will not only sell their inventory at attractive rates but will negotiate on seller consesions as long as the buyer is reasonable. It is done all day long.
You have some very good answers here. BUT Have all these Realtors dealt with foreclosures, I can tell some have not.
1st on these preforeclosures, the sellers can not afford to make their house payments so how are they going to pay your closing cost. Are we talking about Short Sales. Now that is another story.
Is your lender going to allow 3% or 6% closing cost.
On foreclosures there is an amount that the lenders agree to take, anything over and above that, often including the commission, has to be added.
Although your Realtor gives you his professional advice on how to sucessfully present your offer the final decision is yours, it is after all your money.
Banks are not in the Real Estate Business and want to generally unload bad paper Inventory as soon as possible, however some properties have Mortgage Insurance and lenders collect on those loans that had gone bad that were insured.
The are also some large banks that in either the process of folding or being taken or bought over by larger banks so the decision making is up in the air as to how much they loose and who takes the blame everyone wants to have a job when the smoke clears.
There are buyer controlled properties that are willing to be aggresive when selling their homes, If I were you I would rather deal with a seller that is motivated pre-foreclosure before the bank get's their hands on it.
I hope this helps you.
Well the seller really does not pay that you do you are just financing it - just as the seller does not pay all the commission You are. You are the one buying the house. REO homes = Bank Forclosure or HUD accept offers by what they want to clear - The offer needs to state that you want this help before acceptance - if not an amendment needs to be added ( it is preferred to do this way with most lenders) Stateing that the sales price is to be ajusted -----$'s and that the seller will pay ______$'s closing cost for the buyer. I always insert that the commission will be figured on the original price.
Banks do want to unload the homes that they have on the market but they are usually already reduced and some times the the amount on the loan is more then what the property is worthmaking it a short sale.
I don't have the details needed to advise you. Alos keep in mind that the bank is paying the brokers commission too.
A side note to this is that the banks will take there good old time in getting back to your agent as well. You can't hurry the bank along they move at a snails pace and you better have at least a 45 day close or longer.
If you are a buyer the commissions should be no concern, as all you want it the house.