Another of the many questions we receive from buyers is "How can I get a great deal on a foreclosed property?" I cannot tell you how many times I get a call from someone that sees a $300k home on the internet and because it is owned by the bank they want to offer $190k. I won't waste my time or the buyer's time writing up this kind of offer.
Here's a little secret: Just because banks are in the business of lending money does not mean when they take back a house via foreclosure that they will just give it away. When Realtors get bank owned listings, the first thing that happens is we perform a BPO for them. That stands for Broker Price Opinion. It is based on current active properties and recent closed sales in the area. Then the bank determines how much they want us to list it for. So if we tell the bank the property is worth $300k in this market they will not entertain offers of 40 and 50 cents on the dollar!
Check back later for more info.! Thanks for reading.
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