In the last few months, it seems like whenever a well priced bank owned/foreclosure home comes on the market, there's a fight between multiple buyers bidding on the property. Thus, you need to be prepared if you want to have a chance at winning one of these great deals away from the other buyers.
HERE'S HOW YOU CAN WIN THE FIGHT FOR REO/FORECLOSURES!
Follow this list of 5 things you need to do to be prepared to write the most competitive and best offer possible on REO/Foreclosure properties:
- Get preapproved and have your preapproval letter with you. This way you'll know what you can afford. It lets the selling bank know that you are already approved and can buy the property in question. Click here if you need a lender.
- Have current bank statements and your check book.
Most banks are asking for proof of funds up-front with the offer. You'll need a check book to write your deposit
- Be prepared to go over asking price. When you see a listing that is priced way under market, you can be sure that someone else is probably willing to pay full price for the property. If you really want the home, you will have to come in even higher. With multiple offers, some banks will give everybody the chance to come in with a " Best and Final " offer, but not always. Sometimes, your first offer is the only chance you have.
- Use a Realtor that has multiple experience with REO properties, listen to their advice. Most likely, the Realtor will use their experience to help you with the offer.
- Eliminate extras. If you expect multiple offers, don't ask for home warranties, temite work, closing costs, etc. The more you ask for, the less chance you have of getting your offer accepted.
Following these steps, will help you be competitive when you're in a bidding war for REO/Foreclosures.
If you're interested in REO/FORECLOSURES in the Palm Springs, area, click here for more information.
I have learned a lot in the past few years, helping multiple clients with REO/Foreclosure purchases since this wave started. I've established strong professional bonds with many of the local REO banks and listing agents.
Let me share how I can help you as well with the purchase of your next home. Click here and tell me how I can help you.
Paul Kaplan
www.PaulKaplanRealtor.com
760-285-8559
Pacific Union GMAC Real Estate
Palm Springs, CA 92262
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Paul, we're in the same multiple offer situation in Sonoma County, particularly for entry level homes. The last two homes I put offers on both had at least a dozen offers. We came in over asking with all cash, but still didn't get chosen as the buyers. It's a mad, mad, mad world out there. We're crossing our fingers on the next one and coming in a few points higher.