You would think this is a very easy process but the truth of the matter you might find yourself putting in a few offers before you finally get an offer accepted in addition some banks will have you sign some pretty scary addendums.
The key is perseverance, stay focused on your goal of buying a property and hire a good agent, they are free as the seller will pay his or hers compensation. Make sure you hire a full time agent that is committed to your goal and needs. Personally I would avoid agents that give you a list and send you on your way or are not available by phone. Maybe I'm old fashion but I expect service, call backs, e-mail me, just be a good communicator. Remember regardless of who is paying them they still work for you. I expect my agent to go to the different properties with me and point things out that I may not see.
The communication aspect works both ways, keep your agent informed on what is going on. Review the listings that he or she send you, comment on them, go see a few and make offers. There is a lot more work involved in real estate behind the scenes. You need someone that will go the extra mile so show your agent that you care as well and that you value his or her time. They only receive compensation when and if you buy. Make sure you are pre-qualified and that you have proof of funds. In fact your agent should have copies in your file. Why? Because deals move quickly and the reality is that if you like it odds are that someone else will too. You need to move fast and you need to be ready. You should know how much you have available, it should be seasoned (in the bank for at least 3 months).
So what price do I offer? That's the hard part as you never know, as your agent for a history of comparables of bank owned property in the area. In the area means .5 miles away. In many areas if you go out to far the comparable is worthless as you are not comparing like kind. Another piece that is overlooked is list history, ask your agent for the details on the listing, days on the market and reductions. In today's market most properties are reduced but that can take anywhere from 30 to 90 days. Keep that in mind when you make an offer.
The offer, try to come up with a number that makes sense if not you will just be wasting your time and everyone else's. Many times you would even get a response back. It's a time thing. Don't get me wrong if you feel you price is right go for it. Just understand that if you submit 4-5 offers and you are not getting counter offers odd are your bidding too low. Also keep in mind that in any negotiation it's a give and take, what you offer. Large down payment, high FICA, quick close, 10 day escrows all these things will help you get an offer accepted. Therefore you could ask for a lower sell price, etc.
Are you ready to get started? Commit to see a few properties a week and you will be amazed on the opportunities you will find.
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