Question Details

Priscilla Le…, Home Buyer in Powder Srings, GA

I placed an offer on a foreclosre property. I was told there were several offers on this particular property.

Asked by Priscilla Levister, Powder Srings, GA Tue Apr 22, 2008

I was then advised to make an offer slightly over the list price. My question is what is the bank looking for in in buyer and why would he accept my offer over any other?

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Answers

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Banks are looking first and foremost at pricing but there are other factors that weigh heavily in your offer and should not be overlooked.
1). Inspections: No inspection contingency is preferable to the bank, but if you have one (and I'd urge having one), make it short, i.e. 5-7 days.
2). Financing: Cash offers are best but 90% of the offers I see as an REO agent have financing. Banks prefer as much downpayment as possible, pre-approval attached to the offer and conventional financing with short loan commitment time. If there are two offers of equal dollar amount, the financing is carefully considered so don't underestimate this!
3). No subject to sale contingencies.
4). Quick closing date.
Good luck on your foreclosure purchase~ !
0 votes Thank Flag Link Tue Apr 22, 2008
This has been VERY common in the last few months. Since January first ALL my offers have been in a multiple offer situation! I know the media says NOTHING is selling but when a nice property hits the market, it SELLS and with multiple offers! I have closed 8 transactions since January and every one of them I've been involved with MULTIPLE offers! Good Luck!
0 votes Thank Flag Link Tue Apr 22, 2008
This is a very common occurrence when dealing with foreclosed properties. The bank is looking first and foremost at the bottom line figure they will clear after paying costs of the sale (commissions, taxes, concessions, etc.). They may also consider the terms offered, whether or not it is a cash offer, whether or not there are contingencies, etc. Unfortunately, each situation is unique, and it feels like you are shooting in the dark. If you miss out on this one, prepare yourself for more of the same, but don't give up.
0 votes Thank Flag Link Tue Apr 22, 2008
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