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How do banks price foreclosure properties?

By
Real Estate Agent with Keller Williams Realty - Atlanta Partners GARE#173400

More often than not, when a Buyer decides to make an offer on a bank foreclosure, they feel they should discount the list price by the amount of money the Buyer thinks it will take to restore the property to "live-in" condition.

First, each Buyer defines "live-in" condition differently.  Granite counter-tops and brushed nickel fixtures are upgrades, not necessities.  Secondly, in determining a list price for each property the banks are now taking the condition into consideration.

In many cases they are pricing below, and sometimes well-below, needed repairs to bring the property up to "live-in" condition.  It is your decision, as a Buyer, to make what you consider to be a fair and equitable offer, but understand that you may risk the bank accepting another offer over the one you submit because that other offer was higher.

A REALTOR® can perform a market analysis on your behalf to help you determine what a property would be worth once it has been restored to "live-in" condition.

Make sure you hire a REALTOR® to represent you with your next Real Estate purchase or sale. Read a previous post on "Don't buy a foreclosure without a REALTOR®".

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA.  Contact me at (404) 939-3731 or AndreAllen@kw.com.