Now that some states like Arizona have so many bank-owned homes and short sales the buyers have hit the streets again and are finding out quickly that they are not the only ones. There are now numerous buyers who are looking to purchase bank-owned houses at discounted prices or to find a quick sale, and these people are discovering that they need to act very quickly and take advantage of the offers that are made to them.
You must be aware of a number of things when you are scouting out such deals. Houses that have been foreclosed upon and are in excellent condition with a good number of square footage for the cost are, of course, the most popular items out there. They are probably going to receive a lot of offers very quickly, so you will need to ensure you submit your best offer right away.
Of course, you will want your real estate agent to investigate if the house already has offers on it. If there are, you will have to take that into account. When a house receives many offers, one of these will typically be for the asking price. Your bottom line is what counts here so keep in mind that if you start asking for closing costs, prepaids, and home warranties that the total net to the bank will be what they look at.
A lot of banks will accept a number of offers, about 10, and will provide a counteroffer to every initial offer, and ask that buyers return their “highest and best” before a certain date. Here is where you have your last chance to secure this house. Don’t get out of control–stay within your budget but if you are not prepared to at least pay full price and maybe a little more then you may need to find a home that is lower than your maximum allowable amount to spend on a home and then you have some room to negotiate.
In Arizona, we have started to witness a similar market for certain homes, like when they were actually being sold with multiple offers involved in only a matter of a few hours in the 2003 to 2005 time period. We have to get creative with our offers on these “deals” to be sure the buyers get the home that they want.