The foreclosure market in our area has grown and my clients looking for deals are finding just that. With my local knowledge and experience working with banks, I have found some amazing opportunities for investors, and first time buyers alike. I am talking tens of thousands in discounts off of Conservative market values.
Banks are up against a wall with all the REO inventory they have to unload and with the right offer they are ready to cut their losses. I have seen HUGE concessions made for those bold enough to waive their inspection. While this is generally not recommended, I have seen savvy investors doing an inspection of sorts during the showing process. The banks seem to respond well to this approach. If a contract fails it is usually because of inspection issues, and when a property falls out of contract, it sort of stigmatizes the property. Local agents and buyers alike ask 'why did this not close?' So the banks have a vested interest in avoiding this situation by dealing down on problem properties or major fixers.
In one case, property pictured below, the banks was willing to take $155K when the list price was $170- we negotiated aggressively, but what ultimately got this done was the lack of an inspection contingency. That and this was a cash offer where they did not have to wait for loan approval.
Comments(2)