Bank Owned Properties For SaleBeating The Competition
With the growing popularity of foreclosure investing, it is not surprising that the competition to grab the hottest bank owned properties for sale deals has become quite tough. These homes, usually under priced, attract so many bidders that you have to make sure that yours is the best.
Making an offer and getting the seller to choose your bid is certainly tricky. But with the following suggestions, you will find the seller eating out of your hands soon enough.
Do Your Homework
Ask any seasoned investor about the importance of doing your homework and you will get the same response. It is very important. In the case of bank owned properties for sale, you need to be familiar with their history including the Sheriffs Deeds purchase price and loan amounts previously secured to the house. By studying these, you will be able to come up with an amount that is somewhere between the sale price during the foreclosure auction and the mortgage balance.
Check Comparable Sales
Most buyers base their offers on the list price but you will be surprised to learn that the market value is actually the one you should be looking at. In order to come up with an accurate figure, you will have to do a comparable sales study. For starters, you will need to check similar reo homes for sale in the neighborhood within the past three months. You should also check out the pending sales activity as well as the active listings to be thorough.
Check Number of Offers
Another thing that might make your offer stand out is by inquiring about exactly how many competitors you have. Not only this, but you also need to find out if there are cash offers since they are the tough ones that you need to beat especially if you are planning on getting financing. To be on the safe side, have a pre-approval letter to show that you are indeed serious about buying one of these bank owned properties for sale.
Making an offer and getting the seller to choose your bid is certainly tricky. But with the following suggestions, you will find the seller eating out of your hands soon enough.
Do Your Homework
Ask any seasoned investor about the importance of doing your homework and you will get the same response. It is very important. In the case of bank owned properties for sale, you need to be familiar with their history including the Sheriffs Deeds purchase price and loan amounts previously secured to the house. By studying these, you will be able to come up with an amount that is somewhere between the sale price during the foreclosure auction and the mortgage balance.
Check Comparable Sales
Most buyers base their offers on the list price but you will be surprised to learn that the market value is actually the one you should be looking at. In order to come up with an accurate figure, you will have to do a comparable sales study. For starters, you will need to check similar reo homes for sale in the neighborhood within the past three months. You should also check out the pending sales activity as well as the active listings to be thorough.
Check Number of Offers
Another thing that might make your offer stand out is by inquiring about exactly how many competitors you have. Not only this, but you also need to find out if there are cash offers since they are the tough ones that you need to beat especially if you are planning on getting financing. To be on the safe side, have a pre-approval letter to show that you are indeed serious about buying one of these bank owned properties for sale.