Sometimes you have to take a big bite.
Great foreclosed homes at irresistible prices require buyers to be prepared to give their highest and best offers. Why? Because if it is an unbelievable deal, it will have multiple offers submitted. If you really want the house and are prepared to pay for it… go for it.
Are you overpaying for the home? Ask your agent; for the most part, no. You are just paying a higher price than the listed price. It probably still will be a great bargain.
Is this a bait and switch? No. Banks realize at times that in order to sell a property they have to lower its price to such an attractive point that it becomes irresistible. They know that the price will draw multiple offers and quite possibly drive the price higher that the listed price.
Many great foreclosed homes here have investors circling the wagons when they come on the market. Whether you are buying for your primary residence or buying for an investment, jumping into this process without an agent can prove to be very costly.
So if you are bobbing for that great foreclosed deal, be prepared to take a big bite.
Have your financing in place.Work with your agent to glean all the necessary information about the property. Be prepared to act quickly. If you don’t it’s a good bet someone else will.
Charlotte, NC has been the apple in many eyes. Stop by our Web Site to pick Your Charlotte Home.
Claude Cross - Realtor® 704-975-1733
Broker/Owner of Homes by Cross
Serving Charlotte Homes Since 1994
Email: Claude@HomesByCross.com
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Claude...
Actually, that's a great analogy. It is indeed like bobbing for apples.
Richard - Or Peaches...do peaches float?
It's tough for buyers in MD and VA too. We usually have to write a few contracts before a buyer either gets out of the market or
GETS THE MESSAGE.
Well written blog and so true. Everything seems to go multiple offer now.
Len - It's so hard to overcome the hype that great homes are laying on the ground like ripe apples. The press has them glazed. Reality is lock and load and be READY. They get it after multiple second places.
Chuck - Multiplicity is a bank tactic. Take the pebble from their hand. Gotta be quick
Claude - this is a great way of saying this. I love it! We're bobbing a lot here in Phoenix!
Claude, Good advice for buyers. One thing to know about foreclosures is that the list price means nothing and has no baring on the value of the property. The buyer's agent needs to do an analysis and write the offer accordingly.
Claude,
On Saturday, I showed a couple a wonderful foreclosure just listed. They LOVED it. When they asked what they could get it for, I suggested we start at list price. No way, they aren't going to buy anything unless that get 20% off list. Had the chat about list being meaningless - the home was priced way below market and was going to fly. Provided well-documented proof, which they are now studying.
A home they both LOVED, could move right in, well below market, nicer & cheaper than any of the others we saw the same day. And they need to think?
I'm hoping the apple isn't gone when they decide to bite (because it will be my fault if they lose out!)
Claude...You have to chum a bit to attract a feeding frenzy, some REO's have gotten the hint. I hope they get snapped up that is the best chance of future up-ticks in market value sales.
It is happening the same way in the Metro Detroit area. So few good foreclosures and so many first time homebuyers.
Claude - I recently wrote a very similar post stating the same thing for my area in North Dallas. Buyers need to also calculate how much it will cost to bring some of these foreclosures up to livable condition. Many are as-is, and when you add this to the sale price you have to analyze if your "good deal" is really a good deal!
Claude - I am doing quite a bit of business in San Diego and this applies there too. Multiple offer hell!
Hi Claude -- Solid advice. Measure twice and cut one. Be prepared, etc. Very, very good counsel.
Great information.. Many are priced to sell and are below market value in many cases
The same holds true for many foreclosed homes on the market here in Orange County. They are often on the market only for days and then sell with multiple offers.
It does take a while to catch on, but the serious buyers figure it out. The others take their marbles and go home.
That's the truth! Timing is everything- especially when it comes to being prepared to take that bite instead of just a nibble.
Anna - Glad to hear Bobbing is popular in Phoenix
Bryant - My buyers get hammered with your advise on value.
Irene - Perhaps another apple of similar size will come available should your buyers wait too long
Steve - I like the chumming idea. You are right about the future markets
Great way to describe this topic. We are seeing the same thing in North Mississippi.
Russ - The good ones do go quick
Nevin - Hopefully with all the work you win more than you lose.
Chris - Thank you
Roland - The task is to keep buyers informed. You are right
Christine - I think your market as well as mine are mirrored across the country
Dawn - I've had to ask some to take their marbles and go play elsewhere.
Christine - I think your market as well as mine are mirrored across the country
Dawn - I've had to ask some to take their marbles and go play elsewhere.
Allison - Nibbles can lead to bites. Sometimes all it takes is a little patience
Pam - Glad to hear they are bobbing in Mississippi
All of our great deals fly off the shelf here and have multiple offers on them. I have had clients offer well over the listing price and still not get the home. Congrats on the feature my friend.
JL - The good ones surely do Fly. After a few lumps buyers understand. Makes our work continous. Thanks