It's a Foreclosure in Lake Charles -If You Want it Don't Low Ball?

By
Real Estate Agent with Marilyn Boudreaux, Century 21 Bono Realty 0912122870 LA
https://activerain.com/droplet/46m

You find a Lake Charles Foreclosure home for sale  and  it's such a good deal you decide to make a low ball the offer.  This happens all the time and 9 times out of 10 the Buyer loses out on the house.  There is a reason that foreclosed Lake Charles homes are priced the way they are.

Banks  are not looking to profit when they list a foreclosed property, The bank just wants to get the property off their books, and more than likely the listed price is going to be close to what is owed on the house.  If you are going to chase foreclosures, then you have to learn to play by the bank's rules!

Banks have a system in place when they list foreclosures for sale. 

  • The property will always convey in AS IS condition
  • Purchase will usually convey via special warranty deed with no title policy
  • Seller chooses closing attorney/title company
  • Seller will make no repairs

Remember the bank wants the house off their books they are tired of accumulating expenses!

As an experienced Lake Charles REALTOR and negotiator, I am used to looking at comparative Lake Charles homes and recent Lake Charles sold home data to inform my buyer's of market value.  Buyer's trust and rely on me as their experienced agent of choice to guide them with my knowledge and advice when writing a purchase contract.

There are many factors that I take into consideration when advising Buyer's with a purchase opinion.

  • 1.  Will Buyer need closing costs?
  • 2.  Type of Financing
  • 3.  Length of Time Needed to Close
  • 4.  Inspection Days
  • 5.  What condition is the foreclosed home in?
  • 6.  Is buyer prepared to make necessary repairs if needed?

 

If a Buyer is obtaining a loan, an appraisal will be required.  An appraiser may go out to the property and note the condition of the home and take photographs.  The buyer's bank could require that repairs be made before approving the loan.  Who will make those repairs?  Buyer can choose to repair themselves  and move forward with the purchase however, the bank may also require a second appraisal after completion of the repairs.  Who pays for that second appraisal?  Buyer does!

 I not only spend time researching comparative values and conveying  that information  to my buyer but I also point out the costs buyer will incur and explain how foreclosures typically work and what they can expect.

 

For example if you find a $59,000 foreclosed Lake Charles home , you are obtaining financing and need closing costs I would not recommend dipping below the $59,000 price--you will lose out every time.  You must remember if it's a good deal there will be competition and multiple bids so if you really want the home we have to come in with the best strategy.  I have seen it too many times where the buyer low balls and loses out on a home.  I am able to see what the house sold for when the house closes  in the MLS and I discover that the home sold for $70,000 and the bank paid the buyer's closing costs!

This also applies to investors who are looking for homes to flip  who find foreclosed homes.  An investor may be able to pay cash and close quickly but the same procedure as outlined above still applies.  I will still research the comps and advise my investor buyer with fair market value of the home.  Perhaps it is a $150,000 foreclosure in a $235,000 comp neighborhood.  That could be a good flip for the investor but I don't recommend low balling the offer, please don't waste  time and  effort with a $140,000  offer because that is probably not going to fly with the bank!

When making offers on foreclosed properties in Southwest Louisiana listen to the voice of an experienced agent so you don't miss out on that good deal!  Together we can plan an educated strategy that will WIN  an accepted offer!

 

Posted by

*

******************************************************************************************

For more information on Lake Charles Real Estate, visit my website.  You can search homes for sale in Lake Charles, Louisiana,  and view up to date information on Lake Charles Subdivisions, Neighborhoods

Find Lake Charles Realtor Marilyn Boudreaux Century 21 Mike D. Bono & Co.'s on Google+

If you are planning a move to or from the Lake Charles, LA area, I can help!   I am a full time Realtor licensed by the Louisiana Real Estate Commission and am affiliated with:


Century 21 Mike D. Bono & Co.'s

4410 Nelson Road, Lake Charles, LA, 70605 USA

337-478-1578 or 337-499-9592

CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An Equal Opportunity Company. Equal housing Opportunity. Each office is independently owned and operated.  The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments are not warranted or implied representation of it's accuracy,  All information is copywritten and the property of the Author, Marilyn Boudreaux.  

 

Follow me on Facebook

Marilyn Boudreaux Century 21

GOOGLE ME 

Google ME

 

 Marilyn Boudreaux Copyright 2012

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Groups:
The Vent
Advice for Buyers
Tags:
investors
foreclosure

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
247,900
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

It's nice to know that the banks/asset management companies are setting their prices in a competitive and reasonable manner in your area. In this area, the prices are normally set high and many times against the advice of the REO agent - who have no choice. As long as the agents are aware of the pricing strategies in your area, then doing a low ball offer is foolish. 

Jan 17, 2011 05:36 AM #1
Rainmaker
333,694
Rita Fong
RE/MAX REAL ESTATE TODAY, Executive Broker 901-488-9590 - Marion, AR
Realtor - Marion Arkansas Homes for Sale

Marilyn, many buyers keep thinking it is a steal when a foreclosure comes up, sometimes it is, sometimes it is not.  Like you said, if it is a great deal, there are many buyers waiting in line already.  If they want it, put a good offer and get it done.

Jan 17, 2011 06:49 AM #2
Rainmaker
140,819
David Beckham
Realty Executives Bayou Properties - Alexandria, LA
Your Louisiana Real Estate Connection

Marilyn this was excellent advice for purchasing a foreclosure in your market. You are definitely the expert.

Jan 17, 2011 07:06 AM #3
Rainmaker
207,455
Paige Walker
Paige Walker - Pineville, LA
Real Estate Guru - Alexandria Pineville LA

Marilyn great advice for foreclosure hounds! I have noticed that some of the foreclosures in our area are now starting to price the homes like a 'normal' sell......we'll see how that works out for them!

Jan 17, 2011 07:44 AM #4
Rainer
365,952
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Great advice Marilyn. I had a buyer lowball a foreclosure against my advice last fall. Two days later, she was trying to offer above asking price, but t was too late, as the house was under contract with someone else

Jan 17, 2011 08:24 AM #5
Ambassador
544,340
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Marilyn this is really good information, I mean really good information. I have bookmarked and an going to use this with some clients. Thanks, hope you don't mind, but I won't be stealing any clients here in Pa

Jan 17, 2011 08:33 AM #6
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
647,610

Marilyn Boudreaux

Lake Charles LA Century 21 Realtor
Ask me a question
*
*
*
*
Spam prevention

Additional Information