Whenever you are in the market to buy a foreclosed home, whether it is for your own personal use or as an investment property, you should be prepared for the eventuality of possibly being in a multiple offer situation.
What is a ‘Multiple Offer Situation'? It is where there is more that one buyer placing an offer on a property. Most of the time with individuals who are selling, they will consider each offer based on a first come first served basis.
Quite often with Banks and Mortgage Companies that are selling a foreclosure, they will respond in a different way. When more than one offer comes in on a home they are trying to sell in a short period of time, they will often go back to all the prospective buyers with a request for them to submit their ‘highest and best' offer as there is a ‘multiple offer situation'.
This can be an unnerving experience if you submitted your offer on a Friday and the other offers came in on a Tuesday, and I have had some buyers get angry over this. They are of course justified in their protest over the injustice of it all, but one must also realize that the seller is an unemotional and uncaring entity and if you are going to buy the house, you must follow their terms or you will not be successful.
I personally hate the ‘multiple offer situation' however it happens. So what can you do when this happens? 
Well you can do one of three things. You can withdraw your offer and move onto other foreclosures. This is not always advisable, because you might encounter the same scenario on the next one you find too.
The second thing you can do is just submit your original offer, as written. The third thing you can do it to increase your offer, and sometimes if there are several other buyers competing, this can mean that you offer the full list price or higher in order to be successful.
It really comes down to how bad do you want that property? No one can make that decision for you, but a Realtor can help you with evaluating where the house it worth a higher offer or not, especially one that knows the market area.
If you are interested in foreclosed homes in the Southwest Michigan area, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.
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