The good ones go quick even in the current real estate environment especially for foreclosures priced right. Contrary to popular opinion, there are actually some very good deals that come up from time to time that don't necessitate a huge discount. While we are still clearly in a buyer's market, some buyers continue to feel like EVERY seller out there is desperate and should accept any low-ball offer.
This couldn't be farther from the truth for some niche type situations. For example, if a home is priced right, in an excellent neighborhood (e.g., Bluff Park) and staged and marketed properly, it can sell very quickly. For foreclosures priced right especially, the good ones go quick is doubly true even though they are vacant and not staged. New buyers to the market need to understand that savvy buyers working with quality agents are ready to pounce on foreclosures priced right (at or below market in great condition). These homes are simply not all that common as bank-owned properties usually involve deferred maintenance that makes the home show very poorly and represents a financial drag on a purchaser's budget. Great condition foreclosures priced right are diamonds in the rough for aggressive agents. With a ready-buyer, agents are ready to show them and write up a reasonable offer. Seasoned agents will perform a detailed Comparative Market Analysis (CMA) to present an offer that has a reasonable chance of being accepted. Writing up any old low-ball offer on foreclosures priced right is time-consuming and can be very frustrating for the uninformed buyer who finds out later that someone else with an offer above the asking price got the deal.
As agents, part of our job is to educate our clients about the real estate process and making offers on foreclosures priced right requires knowledge and preparation. While we as agents are typically looking for buyers, it can be a challenge with some consumers who think they know more than they really do. It takes skill to gently tell a buyer that a proposed low-ball offer on a property is not likely to be accepted and probably will have multiple offers.
I had a prospect (not a client yet) inquire about a foreclosure listing recently and it had already gone under contract by the time she notified me. I had been stressing to this prospect the importance of getting pre-approved with their lender in order to be prepared. They found a foreclosure priced right and were not in a position to make a meaningful offer (or even get a showing) since most banks and financial institutions will not even consider offers without a pre-approval letter. Unfortunately, this property appeared to have all of the features and the location they were looking for and it was offered at a great price. In fact, this one likely sold higher than the listing price as it appeared to have multiple offers.
The old Boy Scouts them certainly applied to buyers: "be prepared."
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