Tips on Bidding on Foreclosed Homes
Want to get the house? Our broker gives you tips to get the bank to accept your offer!
Distressed properties include short sales and bank owned foreclosures. These homes represent a large portion of the sales in the Pensacola real estate market and often offer an opportunity to purchase a home below market value. Because many foreclosures and short sales are bargains, first time home buyers and investors alike are bidding on foreclosures.
Our broker Pam Keen Brantley offers a few tips on how to make an offer on a Foreclosure or Short Sale:
1. These properties are already priced below market, so when making an offer, be reasonable. A general rule of thumb is that banks price these listings to sell in 30 days or less at or near the asking price. If you really like the property do not be afraid to offer the asking price and if there are multiple offers you may need to come in above the asking price to get the house.
2. Banks often give preference to cash buyers. In order to be considered, you must have a pre-approval letter, at least $1,000 earnest money deposit in certified funds, and proof of funds for the down payment and closing costs in order to submit an offer. For a smooth transaction, make sure to have these items on hand before viewing homes.
3. These properties typically must be purchased “as is” with the right of inspection, which means you can inspect the house and back out or renegotiate because of the results, but the seller does not want to fix anything. Be prepared to fix minor repairs yourself.
If this isn't an option or major work is necessary, you may not be able to obtain a loan on a home. If a home needs a new roof, is missing flooring, has termites, etc., your home may not pass the appraisal. Keep that in mind while looking at homes.
4. These things take time to get answers, and they often have more than one offer so you need to have some patience.
Bank owned properties will give you an answer typically in 7 days or less. Short sale offers take an average of 60-90 days, sometimes more, to get an answer. Of course, the answer could be no. If you have a lease coming up for expiration and want to buy a short sale, you should ask the owner or manager if they will allow you to go month-to-month.
5. If you like it, do not wait to make an offer, do it that day! These properties sell fast! There may be a lot of competition when the house is priced right and in good condition.
If you are looking to purchase a bank owned home in Pensacola, FL, give Pam a call or shoot her an email with your needs Pam@PensacolaRealtyMasters.com
Pam Keen Brantley is a Pensacola real estate (and military) veteran, with over 30 years experience in the Pensacola real estate market. She works with investors who purchase single and multi-family investment properties in Escambia and Santa Rosa counties of Northwest Florida.
Realty Masters of FL~ #1 in Pensacola Property Management
4400 Bayou Blvd. #58B, Pensacola, FL 32503
Call us at (850) 473-3983
Over 45 Pensacola Rental Homes at www.PensacolaRealtyMasters.com
Want to get the house? Our broker gives you tips to get the bank to accept your offer!
Distressed properties include short sales and bank owned foreclosures. These homes represent a large portion of the sales in the Pensacola real estate market and often offer an opportunity to purchase a home below market value. Because many foreclosures and short sales are bargains, first time home buyers and investors alike are bidding on foreclosures.
Our broker Pam Keen Brantley offers a few tips on how to make an offer on a Foreclosure or Short Sale:
1. These properties are already priced below market, so when making an offer, be reasonable. A general rule of thumb is that banks price these listings to sell in 30 days or less at or near the asking price. If you really like the property do not be afraid to offer the asking price and if there are multiple offers you may need to come in above the asking price to get the house.
2. Banks often give preference to cash buyers. In order to be considered, you must have a pre-approval letter, at least $1,000 earnest money deposit in certified funds, and proof of funds for the down payment and closing costs in order to submit an offer. For a smooth transaction, make sure to have these items on hand before viewing homes.
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| Erosion under foundation at bank owned home a problem for lenders! |
If this isn't an option or major work is necessary, you may not be able to obtain a loan on a home. If a home needs a new roof, is missing flooring, has termites, etc., your home may not pass the appraisal. Keep that in mind while looking at homes.
4. These things take time to get answers, and they often have more than one offer so you need to have some patience.
Bank owned properties will give you an answer typically in 7 days or less. Short sale offers take an average of 60-90 days, sometimes more, to get an answer. Of course, the answer could be no. If you have a lease coming up for expiration and want to buy a short sale, you should ask the owner or manager if they will allow you to go month-to-month.
5. If you like it, do not wait to make an offer, do it that day! These properties sell fast! There may be a lot of competition when the house is priced right and in good condition.
If you are looking to purchase a bank owned home in Pensacola, FL, give Pam a call or shoot her an email with your needs Pam@PensacolaRealtyMasters.com
Pam Keen Brantley is a Pensacola real estate (and military) veteran, with over 30 years experience in the Pensacola real estate market. She works with investors who purchase single and multi-family investment properties in Escambia and Santa Rosa counties of Northwest Florida.
Thanks and have a great day,
Nicole St. Aubin, Broker AssociateRealty Masters of FL~ #1 in Pensacola Property Management
4400 Bayou Blvd. #58B, Pensacola, FL 32503
Call us at (850) 473-3983
Over 45 Pensacola Rental Homes at www.PensacolaRealtyMasters.com