Foreclosed Home Closes $84,100 Over List Price-WHY?
Back in February we had clients who were looking for a home priced up to $400,000 in the Prince William County Area. A foreclosed home came on the market priced well below the target price only at only $294,900. It seemed to good to be true that such a stunning home could be priced so low. We took them to see it, and it had everything and more of what they were looking for.
Erick Blackwelder the team leader for Erick and Company coached the buyers that the home was priced drastically below the comps to create a BUZZ in the marketplace and to get the highest bid for the bank.The buyers took a leap of faith based on other homes they'd seen and submitted an offer at $379,000 and we ask for $10,000 in closing costs. Yes, you read that right, the buyers bid $84,100 over list price. Then they sat patiently for a week for the banks response, feeling quite confident they would win the bid and that the appraisal process would ultimately protect them in the end. Then the response came- You Do Not Get The House-Your Offer Was The Highest .However Not The Strongest Offer. The Bank went with another offer.
As frustrating as that was, it's happening daily in the Prince William County real estate market.
So how do you know what price to start searching in?
Good Question and here are a few tips:
- What ever you are approved for,look significantly lower to start with
- Make sure your Buyer Agent checks the recent sales in the community before you make and offer.
- Put your best offer on paper.
- Banks typically will not come back for highest and best offer if they have one they like
- The stronger you earnest money deposit the better
- If you are asking for closing costs, you may need to increase the sales price
As difficult and as frustrating as that was for the buyers, with our help and guidance they continued looking and have since settled on a beautiful home nearby in the same community.That one just wasn't meant to be.
That said, as your Buyers Agent we always watch the listings through to closing, to see what they actually settle for in the end. The home settled for $374,000 and the bank paid $9000 in closing costs. So technically the offer we presented was the higher price.
So why wasn't it accepted?
Our contract was very strong and higher than the accepted offer, however the winning offer was a Conventional Loan and according to the MLS Data the buyer put down a significant amount of cash to complete the sale. Ouch!
Banks will always go with the cleanest, strongest contract with the fewest contingencies..
Are you looking for a home? Just call me, let me know what your looking for and all of us at Erick and Company will move mountains to help you find it!
Did you know we scrub the MLS Database Weekly for Foreclosure Homes? GET INSTANT ACCESS.
Would you like to search for homes in your price range right now in the Woodbridge, Lake Ridge, Manassas Virginia area? Just follow this link --- SEARCH WOODBRIDGE AREA HOMES NOW.
Have Questions About Real Estate?
Call Peggy James today at 703-851-3085
Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's