Recently, it seems like every time a good bank owned property comes on the market, it is like blood in the water with four, five or more offers coming in. Over the last several months teh market in Phoenix Arizona has cahnged dramatically. Our sales numbers have climb quickly to over 9,000 sales per month when last year we averaged around 5,000.
Now the goods news is bank owned homes represent the best deals out there right now. Short Sales takes months to get bank approval while you hope nobody eles writes an offer and private owners are not able or willing to price their home anywhere near the banks pricing.
If you want to have a chance at snagging one of these good deals away from the other sharks, you need to come prepared. I have prepared a sort list of things you need to have ready in order to write the best offer possible.
1. Make sure you are preapproved and have your letter with you. This will let you know what you can afford and also let’s the selling bank know that you are already approved and can buy the property in question.
2. Have current bank statements and your check book. You will need to write a deposit check and many banks are asking for proof of funds up-front with the offer.
3. Be prepared to go over asking price. If a home is worth $200,000, but only priced at $165,000, you can be sure that somebody else will offer clser to full price for it. If you really want it, you will have to come in even higher. Most banks will give everybody the chance to come in with a ” Best and Final ” offer, but not always. Sometimes, your first offer is your only shot. Be prepared for this eventuality.
4. If your Realtor is an experienced agent who has dealt with REO properties, listen to their advice. Odds are they have been in a similar situation and they know what to expect.
5. If there are multiple offers, don’t ask for a home warranty, termite work, or anything that is not absolutely necessary. The more you ask for, the less chance you have of getting your offer accepted.
While there are many variables that can occur, keeping these five things in mind will help you get the property you want.
To search for bank owned homes for sale in teh metro Phoenix area visit www.valleyreadvisor.com or simply contact me directly at 623.362.3060.
