Making the Best Offer on a Home
By admin at 16 November, 2009, 7:12 pm
Now that some states like New york have so plenty of bank-owned homes and short sales the buyers have hit the streets again and are finding out quickly that they are not the only ones. Buyers are flooding the market trying to pick up those low priced bank-owned homes or short sale deals and some are quickly finding out that not only do you need to be on top of things but you need to make the best of your offer.
The things you need to know when shopping these deals. Bank owned homes that seem to be in great condition as well as a lot of square feet for the price are “hot” items and they will likely get multiple offers in a short amount of time and buyers will have to make their offers strong. If you find seven of those “too nice to be true” deals don’t think that you can “low ball” the offer and grab it up so fast. If it is a “great” deal then hopefully it is not at the top of your price range. You need to make the best possible offer as you are likely being going to be competing against other offers.
Naturally, have your Realtor check to see if there’s offers on the home and if so you need to keep these things in mind. If there’s multiple offers then they likely have at least seven that is full listed price. Your bottom line is what counts here so keep in mind that if you start asking for closing costs, prepaids, and home warranties that the total net to the bank will be what they look at.
Plenty of banks are taking the first set of offers–maybe ten–and regardless of what the offers are they counter back to each and every offer to submit their “highest and best” by a designated timeframe. This is your last shot at the house. Don’t get out of control–stay within your budget but if you are not prepared to at least pay full price and perhaps a tiny more then you may need to find a home that is lower than your maximum allowable amount to spend on a home and then you have some room to negotiate.
They are beginning to see the same type market on select homes as they did when homes were literally being sold with multiple offers within hours in 2003-late 2005 in New york. They have to get creative with our offers on these “deals” to be sure the buyers get the home that they need. Keep in mind that this does NOT apply to all homes but there are some great deals out there and buyers are finding them VERY quickly and you need to be on top of it to be sure you get the home you need for a great price.
Some buyers are frustrated already getting beat out by other offers and not understanding why they cannot seem to get the home that they need. Again, stay realistic with what you need or can realistically get for your money. As a Realtor, I am getting unreal requests for homes that literally have everything, pools, granite, a lot of square footage and all for around $100k–NOT going to happen even on bank owned homes. Yes, homes are still selling for less than it would cost to build them but get real with what you think you can get for your money. Most importantly, get pre-qualified so you don’t waste a lot of time looking at homes and getting excited to find out that you don’t qualify for the price home you are looking at or worse yet, not even qualify. If you have a recent short sale or a foreclosure historically 0-9 years or other debt in collections you won’t qualify for any home. Lenders are much more strict than they were historically and for nice reason–they have lost much money lending to buyers on the fence or without any money down! Happy Shopping!
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