In this current market, why are consumers so stuck on
looking at bank owned homes?
Drive down the main highway on the Outer Banks and every
realty company has a marquee that says bank owned list available. Why are consumers so stuck on those lists? Why aren’t they looking at everything? Let’s face it; bank owned properties do have
special circumstances for buyers. The
bank wants to move the property, it is generally priced to sell, you can
generally get your closing costs covered so long as it is not a cash offer, and
if you make a low offer you won’t insult the bank, it’s just business. What you won’t get on a bank owned sale are repairs! That’s right, the bank is selling the home
“as is” No repairs or warranties expressed or implied. That’s it.
And that incredibly low ball offer that you just submitted on that fixer
upper. The asset manager that works for
the bank and represents the property has a bottom line. That bottom line depends on many
things; how long the property has been
on the market, what is owed, condition.
I haven’t seen many asset managers straight out reject an offer, but
you do have to show that you are serious.
So when that home is listed, the asset manager has already taken into
account the condition of the property.
Remember this; any realtor worth their salt takes into
account everything that is on the market, distressed or fair market when
comparing a comparative market analysis of a property. That is what the appraisers are looking at
too, and they look at the last three months.
So the fair market seller has to price in line with the distressed
properties, and generally they are in much better condition, and you can get a
history form the current owner. That is
not an option with a banks owned property. A common misconception of bank owned properties is that
you will get it for next to nothing.
Not true, banks are in business to make money, and aside from their
carrying costs, they are not going to give that property away. Obviously the longer a property sits on the
market the more negotiable the bank will be, but the fair market seller is the same
way. Their property is listed; they must
want to sell it, and the longer it sits the more negotiable the price will
Some buyers look at the days on market and amount of price
reductions. If there are no price
reductions, they assume that the seller is stuck on full price and will not
budge and count this property out. Not
true, many sellers do not want to reduce fearing the buyer will offer less even
on a reduced price. Homes with many
price reductions are generally priced too high initially, and that in its self
throws up red flags to the buyer. What
is wrong with this home? Your Buy the Beach Realtor can walk you through this process and knows the Outer Banks Market. Call us today!
Author:Kelly Dean Phone: 252-207-3655 Dated: October 30th 2013 Views: 14,465 About Kelly: Recently featured on HGTV's Beachfront Bargain Hunt episode on Kill Devil Hills and Nags Head! My f...
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"What a pleasure it was to work with Kelly Dean on the purchase of our condo. She definitely went above and beyond to assist us in getting all the details we needed to make our decision. We visited several properties with her until we found the perfect one for us. She was great on the follow-up to make sure everything fell into place in time for an easy closing. We highly recommend her! Thanks for everything, Kelly! 5/5"