Tips on getting your offer accepted on a Big Bear Bank Owned Property.

By
Real Estate Agent with REMAX- Big Bear

 

With the increase in the amount of bank owned listings in the Big Bear MLS, the chances that a buyer will be dealing with a bank as a seller is also increasing.  Even a savvy real estate buyer or investor may be trying tactics that worked in the hot market but are now losing their effectiveness.  In order to compete in this changing market there are a few things to keep in mind and use to your advantage when trying to get the price you want on a foreclosed home.

 

  • Realize that you are not the only one looking at the property.  Even though this is a slow market and many people are hesitant to make a move with so many uncertainties, there are still other buyers out there.  One common mistake I have seen with potential buyers is their assumption that they are "the only ones crazy enough" to be considering buying a place.  Not only does this frame of thinking give the buyer a false sense of having the upper hand in negotiations with the bank, it also cause the buyer to believe they have all the time in the world to decide if they want make an offer.  Neither of these beliefs are true.   
  • The good ones get multiple offers, be prepared to offer over the listing price.  I get all kinds of funny looks from my clients when I tell them they need to write their offer $20,000 (or more sometimes) over the bank's asking price.  Not only does this go against everything they believe a "buyer's market" should be, many people don't believe they are getting a "deal" if they don't get the property for x dollars under the listing price.  While I understand the mind game going on with that type of thinking, it is wrong on every level of reality.  A listing price is just a number.
  • Let the property "season" before you "low-ball" it.  Just like regular sellers sometimes banks do get the price wrong.  However it usually takes the bank longer to admit it.  If you see a bank owned property that you absolutely must have but not at their price, let it sit.  In my experience a bank becomes more negotiable after 30 days of sitting on the market.  If it gets to 60 days, then they know they priced it wrong.  I am not afraid to write an offer under the listing price if I believe it is a realistic price, but I still advise my clients to wait a few weeks to write the offer.  That way the bank has actual proof (the days on the market) that it needs to adjust it's price or take less money.
  • When writing a low offer, leave out the petty stuff. My philosophy for any offer, on a bank owned or otherwise, is if you are going to beat them up on price make the rest of your offer strong.  Writing in -seller to pay closing costs- is not a strong offer.  Either is asking for a bank to pay your escrow fees.  Or asking the bank to survey your property.  Etc..
  • Don't be afraid to resubmit a rejected offer at a later time.  So the bank rejected your offer and then the property sits on the market for another ten days, what do you do?  If you haven't found anything you like better, resubmit the same offer.  Unlike a traditional seller the bank isn't going to play any of those ego games.  They aren't going to read your name and say "wait a minute this is that buyer from two weeks ago".  They are going to look at the offer and if it makes sense to them now, they will react accordingly.  I have seen this strategy work successfully.

 

The Bank Owned market started slow up here in the mountains.  Most of the early REO listings were in the lower priced areas and many were being listed by "off the hill" out of area agents.  The past few months we have seen more and more banks begin to list properties where they belong, in the local MLS.  Not only does this increase the chances of the property selling quickly, since the majority of agents in the valley only look at the local MLS, it also increases the chances of multiple offers, less days on the market and the need of adapting to this changing market.  Hopefully some of these tips will help you get a great price on a your dream home in the mountains.

Feel free to contact me  if you have any specific questions or need any more info.

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