To All of You "Low-Ballers" Out There

Times are tough, we all know that. Times are even tougher when it comes to selling a home. Huge inventory, cut-throat pricing, scarce buyers... Naturally some may think they can practically steal some of the least desirable homes around - bank owned/impenetrable/foreclosures. Not so fast... Yes, the number of bank owned homes is huge and will stay so for the foreseeable future. They are mostly in bad or very bad condition and corporate sellers would not (in most cases) pay for any repairs, even if required for the property to be appraised. Yes, cash is king but let's have some perspective here. Bank owned properties are listed at basement bargain prices to begin with. In many cases, the price comes at 10% - 30% less than comparable, other homes in the area.

    There are bank-owned properties that have been sitting on the market for 4, 6 or even 8 months and have never been under contract. Let's not assume the seller will take any cash offer. There are procedures to adhere to and guidelines to follow. The massive and impenetrable bureaucracy of corporate sellers has their own rules that may seem foolish and illogical to us, humans. Well, there is human logic and bank's logic. So if a house is in poor shape, has been on the market for 6 months and would never appraise, don't think you can get it at 50% off (the current list price). Not yet... Perhaps, after 2 or 3 more price reductions, you will get your deal of a century. In most cases, all what you can hope for, is a "mere" 30% off. Obviously, if there are no other buyers willing to bid on the same property...

    This has been my experience after dealing with bank owned properties in the northwest suburbs of Chicago in the last 3 years. Perhaps asset managers (as we call agents of corporate sellers) are more lenient in other areas. Or perhaps not. After all, if someone is ready to sell the property at 50% off, why not price it 30% or 40% lower? It is a good advise for all buyers, not only corporate ones... Learn more on my website dedicated to bank owned homes in northwest Chicago area.