It is a popular misconception that banks are often accepting half of what they are asking.
This is not the case. The reality is that banks often list homes at half of their former value. Banks only accept offers that discounted on select properties that have been on the market for quite some time.
When foreclosures are listed the properties have been appraised and thoroughly inspected and the banks are quite aware of all repairs needed.
The prices reflect these factors. Sometimes for one reason or another a bank will price a property well below market value to move it quickly. Usually these properties receive multiple offers within a few days of the listing date.
The art of finding a good deal is in watching the market closely on a daily basis and being ready to pounce when you see a good deal.
To be ready to act quickly you need to be pre-approved by a reputable mortgage company. All banks require a pre-approval letter to be submitted along with your offer before they will even consider it. Some banks require you to obtain a pre-approval letter from one of their loan officers before they will consider your offer. If you are paying cash then the banks expect to see proof of funds. This can be either a bank statement showing you have sufficient funds to cover the offered price or a letter from your financial institution on their letterhead stating that you have the money.
Now that you are ready to make an offer you have to decide where to start.
Properties that go into multiple offers often sell for higher than the list price. Yes, even in this market. The fact is that there are many other people out there that are also looking for a good deal on a foreclosure. You have to expect that they are also ready to go and will be aggressive with their offer. It is not uncommon for foreclosures that have been priced right to sell for $10,000-$30,000 or more over the list price.
Now that you have successfully negotiated a contract to purchase your new home there are several more steps that I will guide you through.
Some of these are a home inspection, termite inspection and an appraisal. If items come up that need to be repaired you will need contractors.
When you are ready to purchase your next home I would love to be your agent and ensure that your home buying experience is as simple as it can be. Contact me with your wants and needs!
Begin your search for GA Foreclosures now!
Don't forget to check out GA REO Properties to find bank owned properties in the State of Georgia!
(Wriiten by Ryan Kowalske)
Realtors® serving Lake Lanier and Northeast Georgia
Keller Williams Lanier Partners