I know you are going to find it hard to swallow in today’s market that anything is a sellers game, but I’m afraid you will just have to suck it up and believe it.
Here’s why.
First of all the sellers (banks) are going to decide when the properties go on sale. We can be fairly certain that the banks (or maybe the government) are controlling the speed of the foreclosure process, and the rate at which properties are released on to the market. I’ve been doing this for nearly 8 years now since the market first crashed, and in that time the number of bank owned properties on the market has hardly changed. As homes get sold new ones appear to take their places. If the market slows down the influx of new REOs slows to match it.
Secondly the sellers (banks) will decide the prices, not the buyers. Time after time I have watched buyers submit low ball offers based on the thinking that it’s such a lousy market the seller will take whatever is offered. These offers are nearly always rejected. However if you wait a while, the price will probably come down, often fairly quickly until buyers appear, and begin to make offers. The statistics still show the selling prices are on AVERAGE around 95% of the asking price, with very few dropping below 90%.
Thirdly the sellers (banks) decide the format and the speed of the negotiation. The seller will always dictate the length of time for inspections, the closing date, the format of the contract, and who the closing agent will be. For the most part the buyer is an interested bystander, and needs to agree to the terms presented by the seller, or risk not getting the property.
And how can they get away with this I hear you ask. They can do it because the prices are outrageously low, and you are in many cases getting a HUGE bargain.
As long as you work with someone who knows how the game is played and what the rules are you will be OK. So give me a call and let’s go get a Bank Owned Bargain.
First of all the sellers (banks) are going to decide when the properties go on sale. We can be fairly certain that the banks (or maybe the government) are controlling the speed of the foreclosure process, and the rate at which properties are released on to the market. I’ve been doing this for nearly 8 years now since the market first crashed, and in that time the number of bank owned properties on the market has hardly changed. As homes get sold new ones appear to take their places. If the market slows down the influx of new REOs slows to match it.
Secondly the sellers (banks) will decide the prices, not the buyers. Time after time I have watched buyers submit low ball offers based on the thinking that it’s such a lousy market the seller will take whatever is offered. These offers are nearly always rejected. However if you wait a while, the price will probably come down, often fairly quickly until buyers appear, and begin to make offers. The statistics still show the selling prices are on AVERAGE around 95% of the asking price, with very few dropping below 90%.
Thirdly the sellers (banks) decide the format and the speed of the negotiation. The seller will always dictate the length of time for inspections, the closing date, the format of the contract, and who the closing agent will be. For the most part the buyer is an interested bystander, and needs to agree to the terms presented by the seller, or risk not getting the property.
And how can they get away with this I hear you ask. They can do it because the prices are outrageously low, and you are in many cases getting a HUGE bargain.
As long as you work with someone who knows how the game is played and what the rules are you will be OK. So give me a call and let’s go get a Bank Owned Bargain.
No comments:
Post a Comment