One of the biggest frustrations buyers have is offering on a bank owned foreclosure and not getting it. As a listing agent for many of the banks, sometimes buyers call me wondering why their offer wasn’t accepted, so I decided to write a 20 best tips on how to get your offer accepted.
The first thing buyers must understand is there is a lot of competition for these homes. Typically bank foreclosures go fast, and for over asking price. Everybody seems to want them. So structuring your offer and submitting it correctly will increase your chances.
Keep in mind, listing agents must have all the required information, so if they ask for something upfront, they mean it. Listing agents don’t have time to track your agent down for this info. We attach a document to each MLS listing specifying what is required with the offer.
The reason is, the bank never sees your offer until one is accepted. The listing agent must enter information into and online submission, and it must conform to what the bank asks for, and all fields must be filled out. If a foreclosure has 20 offers, the listing agent doesn’t have time to call 15 agents and beg for information they required upfront. Keep in mind, it takes awhile to upload 20 offers, and the listing agent may be dealing with 20 properties.
Listing bank foreclosures is very time intensive, and the listing agent coordinates everything from repairs to working out HOA fees, title issues, code violations, etc. Providing the required information is the first step.
Secondly, consider that you’re probably competing against other buyers, and that many will be above asking price. So how do you compete? Consider a higher escrow money deposit, shorter closing time, and definitely a shorter inspection period. Bank asset managers are also gauging the strength of each buyer, so you want to put your best foot forward in hopes of getting the property.
In many cases banks will counter multiple offers with highest and best. Buyers are shocked when the bank doesn’t and just accepts one offer, so it always pays to pony up early on and go for it. If you do get a highest and best form, assume the other buyer wants it as bad as you do, and act accordingly, because if you don’t, chances are you won’t end up with the home.
Be careful that your offer is written well and clearly states all fees and costs. It is difficult to impossible to make changes later, and it could cost you the home. Any change to contract later on opens up possibility home goes back out for rebid and you could lose it, so it pays to write offer correctly the first time. Same applies with names; make sure everyone who wishes to take title is on contract from beginning. You may not be able to add names until after closing, which could require new title insurance and additional fees.
These are some very useful tips by an experienced foreclosure agent. Each bank has their own rules, so be sure to follow directions well. Make sure you’re working with an agent who understands contract language. Many times we see financing contracts that don’t match up or specify some costs buyer is not allowed to pay under the buyer’s financing program, and the offer cannot be presented to bank until language is cleaned up which could cost the buyer the sale because of delays. Be sure to work with an agent who has experience writing clear and concise contracts and understand financing in and out.
Bank foreclosures are prevalent in Fort Myers, Cape Coral, Bonita Springs, Estero, and Lehigh Acres, so following these tips will increase your chances, and ignoring them will most assuredly have you scratching your head wondering why the bank selected another offer. Good luck and happy house hunting.
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