BASIS FOR WRITING A CORRECT OFFER ON A BANK OWNED PROPERTY!

By
Real Estate Agent with THE CHAVEZGROUP AT COLDWELL BANKER PREVIEWS INTERNATIONAL

THIS SHOULD HAVE BEEN TITLED : BASIS FOR WRITING  A CORRECT OFFER

  • First you must understand that banks have decided on the price by having individual brokers give broker price opinions on the asset/property

 

  • You must also understand that brokers giving the bank a price opinion will sometimes give a higher value to get a listing, this is not common when the broker has been doing bank owned for a while. It is seen mostly with new brokers trying to get an REO account

 

  • When the opinion is over priced you will see the listing price drop after a few weeks, usually due to someone writing a offer based on recent comparables

 

  • When someone submits a offer based on comparables and it is lower than the listed price banks will send out an appraiser to verify what is really happening

AND NOW THE DETAILS

  • YOU MUST BASE YOUR OFFER ON THE LOCAL RECENT SALES COMPS NO EXCEPTIONS

 

  • JUST BECAUSE THE PRICE IS $370,000 DOESN'T MEAN THE BANK WILL TAKE $370,000

 

  • EXPECT TO BE ON THE TABLE WITH MULTIPLE OFFERS IF THE COMPS ARE HIGHER THAN LIST PRICE

 

  • YOUR OFFER IS NOT BETTER BECAUSE YOU HAVE 20% DOWN

 

  • YOUR OFFER IS NOT BETTER BECAUSE YOU DIDN'T ASK FOR CLOSING COSTS REMEMBER :NET

 

  • YOUR OFFER IS BETTER BECAUSE IT NETS THE MOST TO THE BANK

 

  • YOUR OFFER IS BETTER BECAUSE IT HAS A GOOD ESCROW LENGTH

 

  • YOUR OFFER IS BETTER BECAUSE YOU HAVE A DIRECT UNDERWRITTEN APPROVAL FOR LOAN

 

  • YOUR OFFER IS BETTER BECAUSE YOU HAVE A NO LOAN CONTINGENCY (RISKY) BUT GETS ATTN!

HOPE SOME OF THESE TIPS ARE HELPFUL IN GETTING YOUR OFFERS ACCEPTED!!

 

 

Comments (3)

Connie Betz
Berkshire Hathaway HomeServices Ambassador Real Estate - Omaha, NE
Top Omaha Realtor - Omaha Homes for Sale

Benny, what great information.  I'm reblogging you!  Thanks!

Jan 27, 2009 03:38 PM
Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Multiple offers still abound in foreclosed homes. Amazing, but true. Nice synopsis for Buyer Reps to keep in mind

Jan 28, 2009 02:23 AM
Bill Saunders, Realtor®
Meyers Realty - Hot Springs, AR
www.BillSellsHotSprings.com

Thanks, Benny.

I just worked my first foreclosure on the buyer's side and what you said is definitely true. Great advice. Also don't expect a quick answer on anything!

Feb 09, 2009 08:55 AM

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

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