Trying to buy one of the multiple foreclosures (REO, or Real Estate Owned) for sale in Waldorf, MD or Charles County MD? Most folks who are trying to buy a foreclosure are looking for a great deal, and while there are some deals to be had, it seems like there is just as much overpriced junk that needs to be reduced in order to sell.
In comes the concept of the low-ball offer. Low-balling is where you offer considerably less than the asking price on a home. It's easy enough to write (You always have the right to offer as much as you think is fair), but writing the offer and getting the offer accepted are two very different things!
So how do you convince the banks to accept less than they want for a foreclosure? Well, there's a couple of ways to increase your chances of getting that offer accepted.
With a buyers market, the more enticing the TERMS of the contract are, the better your chances of getting the deal to closing. Think about what perks you have to offer in the contract. Here's an example of things that can make your offer more attractive:
- Offer a quick closing- The less time the bank has to hold the property, the better off they are.
- Don't request repairs- Banks are selling as is, and with a low-ball offer, structure it such that you are contingent upon an INSPECTION WITH WALK-AWAY rather than repairs
- Avoid contingencies- If you want the banks to consider a low-ball offer, there has to be a good reason. Bogging down a contract with multiple contingencies is a good way to get the offer rejected.
- Offer cash- With a cash offer, there's no risk of loans not being accepted, which can be very appealing to the bank.
- Look for homes with "market rot"- Homes that have been up on the market for more than 150 days are good targets because the bank has been holding them for longer than they would like. They probably need to lower the price, and are more likely to take an offer.
- Write a letter- Sounds cheezy, but outlining why you're offering this sort of price can help the bank make sense of the offer. Every little bit helps, and I've seen things like this actually make a big difference.
Related Posts:
What Does "AS-IS" Mean?
Waldorf, MD Foreclosure Update for August, 2008
Foreclosure Buying Tips Part 1
Foreclosure Buying Tips Part 2
Foreclosure Buying Tips Part 3
~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog
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All of these points are outstanding. The cash offer is always helpful to say the least. Here in AZ I have seen several cash offers get accepted over offers that were at least 2-3% higher.
Posted by: James Wexler | August 20, 2008 at 05:23 PM