The time of foreclosures returning to the market is upon us. There has been a huge laps of time in foreclosed houses being put on the market, but now the tide is turning and a resurgence of foreclosures dominating the market is upon us.
What guidelines should buyers follow with foreclosed properties?
1. Offers: When a house seems like it is a great deal and it is only on the market 1-5 days, my strongest advice would be FULL PRICE OFFERS ONLY! In the last round of foreclosures many buyers lost the deal of a lifetime because their train of thought was "Of course we can low-ball this house, it is a foreclosure and the bank wants to get rid of it." Yes the bank wants to get rid of it but there is often several avenues of advice from Realtors, Appraisers and county records that bring the bank/seller to arriving at a very enticing price to move it quickly.
2. Don't wait! Holding off on placing an offer on a home is risky business, in fact it is a great way to lose a great deal. He who hesitates is lost!
3. Be financially prepared: Having your funds, proof of funds or prequalification for a mortgage is essential. Most banks will not even look at your offer without it and the time it takes to get this paperwork may very well be what costs you that great deal.
4. Condition of home: The condition of the home ie damage to walls, doors, missing appliances, missing HVAC units, roofing, the list goes on are all considered in determining price so a low offer because of these conditions is not advisable.
All in all, if you want the deal and the price is good offer your highest and best at the start because once there is a first offer chances are quite good there will not be another shot at being first.