MR. BUYER. . . DO YOU WANT TO BUY THIS FORECLOSURE OR IS YOUR KNEE JUST JERKING???

I read an ActiveRain post this a.m. about home buyers who lose out on bank owned listings.  What the article didn't provide was information about the value of the foreclosed property for sale.   

The scenario is typical. 

1.  Buyer makes offer on listing for bank owned house for sale.
2.  Bank accepts another offer.
3.  Agents tells buyer they didn't get the house or a counter-offer.
4.  Agent is getting bleary eyed from making multiple low offers for buyer.

BUYER WANTS TO KNOW. . . .

• "Why didn't they tell me that there was another offer."
  "Why didn't they give me time to think about it."
  "Why didn't the bank counter my low offer?"

BECAUSE THEY DON'T HAVE TO!

My question would be, is the list price a fair price????  If the foreclosure is priced fairly, a smart buyer will go for it and not play the negotiation game.  Where is it written that buyers MUST negotiate??

KNOW THE COMPETITION?  THE COMPETITION FOR YOUR LOW OFFER IS - - BUYERS WITH CASH!  That's who the competition is.  Cash buyers are attractive to banks because:

There is no financing contingency.
There is rarely a home inspection.
The cash buyer settles quickly.
The cash buyer doesn't spend a lot of time negotiating.  They make and offer, get the property or not and then move on.

Cash buyers who don't get a property won't be asking. . . ."Why didn't they. . . . . . "

Agents won't have to say. . . . . "BECAUSE THEY DON'T HAVE TO!"

I've seen too many buyers lose good properties simply because the negotiation was more important to them than getting a good home for a good price.  Most foreclosures are already discounted for price and condition.  A competitent buyer's agent will provide the information to the buyer for the buyer to make a good financial decision.  If the agent isn't providing information about other properties on the market, . . . .  well, that's another post. 

The article reminded me of the many agonizing hours that many agents and buyers spend waiting, waiting, waiting for a bank's response to an offer.  When the listing agent says that the buyer didn't get the property, the buyer usually wants to know "why, why??"

Because the buyer was more interested in making an offer below list price than getting a good house for a good price. 

IF YOUR KNEE WAS JERKING when you made the offer to the bank, you'll likely hear. . . .  

"Sorry.  You didn't get the house."

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 

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