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Old 04-13-2016, 09:26 AM   #29
Travis Munroe
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Quote:
Originally Posted by Calgary14 View Post
Are there any major differences between making an offer on a regular listing and a foreclosure? Also, it doesn't seem like the prices are that low....it was mentioned earlier they're typically 2-3% cheaper - I would expect 10%+ lower
Not much difference for the buyer. The process for the realtor can be significantly different and you will be waiting a few days for a counter vs a few hours but all around, if you have a realtor who understands the process, they will make you feel as if it is any other deal.


Quote:
Originally Posted by snootchiebootchies View Post
My understanding is that for foreclosed homes, you will be making an offer to the bank or lender, and they are often not as motivated as a homeowner to sell, and thus do not really negotiate at all. The bank is only interested in getting their money back.

My guess is that foreclosures have to really flood the market or homes have to sit unsold for many many months before the bank is willing to make a move on the price.
This is not completely accurate. The bank is more motivated than a typical selle. They are not in the business to sell homes and it can cost them 40+k to go through the foreclosure process, list and sell the home.

As for the bank only being interested in getting their money back... they are not getting their money back through the foreclosure sale. If there was equity in the home it would be handled by the courts and the bank would have little to no say. If the owner is underwater, the bank is trying to recover as much as possible in as short of a time period as possible.

The same thing is said when you deal with appliances... appliances are not included in the sale but the bank won't take them. The bank has no idea if mr foreclosed on just picked up the brand new steam washer/dryer on a 0 down at future shop.

When it comes to the pricing, they are often priced 2-3% lower which is just enough to make them more attractive than regular listings. When it comes to negotiations, average list to sell is closer to 97% right now (98+ typically) where as a will have a legitimate shot offering 95% to the bank.
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