I know, you are thinking to yourself this agent has lost her mind, it's a "buyer's market!" Yes in general the main theme is still leaning towards a buyer's market, but in 2009 we saw a trend with multiple offers on Atlanta foreclosures and Bank Owned properties. Bidding wars can be confusing, especially when dealing with foreclosures. Listing agents representing the banks are sometimes less than attentive (to put it nicely). Cold hard cash offers from investors with no financing contingencies are beating out most would be homeowners who sometime make offers for full asking price! Atlanta isn't the only city dealing with hungry cash buying investors, the Washington Post recently wrote a very education article about Cash Buyers Triggering Bidding Wars.
When you are looking to buy a foreclosure or short-sale do you homework. Sometimes it's ok to bid over the asking price. The value of the house depends on the other comparable sales that have sold within the last 6 months. So ask your Realtor to pull all recent comparables in the neighborhood then make your highest and best offer. This is a non-emotion transaction for thes bank. At the end of the day it just comes down educating yourself and making the right choice for your budget. If you get outbid on the first go around, don't get discouraged. There will be more foreclosures popping up on the market. If you make value and location your top priorities you can position yourself with some hefty equity and a good investment for your future.
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