So, you are starting to look for a new home and you find bank owned homes to be the most affordable! So do a lot of other buyers, many times even in “this market” we are finding the bank owned home priced so well that there are multiple offers.
Homes you can expect a multiple offer situation is the home that is clean, not stripped of it’s fixtures and ready to move into. So, how do you insure you are the winning offer on one of these properties?
- Know the market – and make an offer that is reasonable. If you are asking the bank to pay your closing costs, you may need to make your offer closer to the list price or possibly higher than list price. Most banks are willing to pay up to 3% of the purchase price in closing costs, however if you are in a multiple offer situation you may want to formulate your offer so this is off set in the purchase price.
- Apply for your loan ahead of time. Most banks will ask for a pre-qualification letter (prequal) with the offer. Having a good relationship with your lender will make getting this ahead of time or at the time of the offer much quicker. If you plan to purchase with cash, the bank will want proof that you have these funds available.
- Inspection – be sure you have a home inspection, many of these homes have sat vacant for some time prior to going on the market. Many of the deficiencies of the home may not be as obvious as they would be if the home was occupied.
- Make sure you have your own agent. The bank has their agent, and using their agent will not get you a better price. You deserve to have someone on your side and watching out for your best interests.
As a Certified Distress Property Expert, I am happy to help you purchase a bank owned home, short sale and even a standard resale property. Real Estate is a crazy world, let me help you make it through the process without the stress.