So you've finally decided to buy your next home and you know there are deals to be found in the foreclosure and bank owned property market. Problem is while you were making up your mind, others jumped into the home foreclosure market too. Now you may be facing some competition for the best properties. What to do?
Just because there are other buyers in the market doesn't mean you can't come away with your dream house. But to be a successful buyer in today's real estate market you're going to need help.
Your first best move is to know a few inside tricks. As experienced real estate professionals we have many more than eight ways to increase your chances of landing a prize property despite heavy competition. The following tested tips will increase your market savvy and sharpen your competitive position. Then you'll be ready to act quickly the minute you see that perfect house you don't want to get away.
Eight Simple Secrets to Avoid Costly Mistakes While Buying a Bank Owned Property
- Get Pre-Approved.
To be pre-approved for a mortgage loan is your first best move. You will go through what amounts to a mini-application process (paperwork, credit check, etc.) prior to shopping for a house. Pre-approval is more effective than pre-qualification, which only gives you a rough idea of the amount a lender will lend you - assuming no hang ups in the credit and income checking process. When you are pre-approved it's like carrying around a suitcase full of money. In the eyes of the bank, pre-approval makes you a very desirable "cash" buyer. That's a real advantage over another buyer whose financing is uncertain.
2. Beat The Competition To New Listings
Once we know your specific price range and tastes, we can regularly do a computerized market sweep for new foreclosed listings. We'll send you a hot list of attractive properties as they come on the market. That way you'll get a jump on other buyers before the new listings are advertised or held open. Timing can be everything today.
3. Do your Research.
Make yourself a "value expert" by investigating local properties to get an idea of price points, listing-to-sale-price ratios, hottest areas, and best places for a bargain. Once you know what your money will buy, as your buyer specialists, we'll add our up-to-the-minute knowledge of what comparable properties sell for in specific neighborhoods and what impact specific features have on price. Together we'll guarantee you the best price and terms.
Nobody wants their offer languishing on a fax machine in the listing agent's office while other buyers are putting offers in the listing agent's hand. When the situation calls for that personal touch, you'll gain an advantage by having us present your offer in person, plus we may pick up critical intelligence on any competing offers by being on the scene.
5. Prove You Mean Business.
There are few better ways to show you are serious about buying a property than by including a good faith deposit along with your offer. A competitive deposit could be as much as 5% of your bid price to be sure it gets the banks attention.
Just because the foreclosure market is active doesn't mean all properties are a bargain. Sometimes you may have to offer something other than the asking price, pay for inspections, closing costs, or offering a settlement date that fits the seller's timetable. But don't go crazy. Remember just because the bank owns it doesn't mean it automatically a great deal, we still need to do out market research and make sure we are getting the home at a below market price or competitive price.
7. Keep It Simple and Clean.
Make sure your headache-free contract itself isn't messy, or overly cluttered with unnecessary contingencies, especially repairs. Keep contingencies to a minimum or none at all. Better yet, offer to be helpful, such as order an inspection in 48 hours. Be flexible. A buyer who will accommodate a banks needs, closings quickly, is a smart buyer.
8. Don't Be A Lone Wolf.
What you need most in today's market is experienced professional guidance. As your neighborhood real estate specialists we can help you get pre-approved, find a prize property, and negotiate the best deal on your next home no matter how heated the competition. We'll help you be a cool customer.
Original content from Excalibur home sellers reports.
Realtown Blog: Foreclosure Tips
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