Getting the Deal on Foreclosures

Some foreclosed listing agents are offering properties at well below the market value. They are baiting the property and successfully gathering offers. Under a traditional real estate sale the buyer gives the seller a time to repsond to the offer. In foreclosures the banks list them subject to their own time frame and response time. Typically they see how much activity there is on the proeprty and do not cut off the offers by accepting one. They wait to see how much they can get for the property. Until offers stop they will just wait and wait. Your personal desires have no impact on their decision making process.

If you are a buyer you should consider making an offer that is the amount that you would actually pay rather than to try to lowball the offer. If the real value is over the asking price, consider making an your offer accordingly. Putting out a realistic offer will get you the property you want. Lowballing will get you to the table writing contracts that are not acceptable to the bank.

Always be prequalified for your loan before looking for property. All banks require your pre-approval letter before considering your offer. Some even require you to go through the process of qualifying with their bank. Even if you are buying in a traditional property, you should have yourself qualified so the seller knows you are able to close the deal. It could make the difference in you getting the property over another buyers’ offer.