When Bidding On A Foreclosed Property, How Do You Decide What To Offer?
I'm looking at a property on a great neighborhood and it's in foreclosure for 98,900. I really want this property but I don't want to overbid on it.
Any advice?
Quinn
Find out what the original loan amount was and when. Then take your comparables for that area and make a determination from that to find out if you are getting a good deal or not. Just dont be blinded by the beauty of the house. I can honestly say my most profitable deals have been from uglier houses in not so nice neighborhoods.
Good Luck,
Kyle
Start your research now.
When is foreclosure date? Tells you your limits on time to buy prior to sale. Check with Trustee/Person who will conduct foreclosure sale. See if there are many requests re: this sale.
Check your present time comps. Properties that have been sold within the last six months. Check the Brokers Opinion of Value. Check with the local appraisers what they think of its value. Not necessary to formalize this information just get it. Try to find reasons for foreclosure is it just money, or is it the house or whatever.
Then if satisfied start your offers and some time in this stage meet the Seller and evaluate this person. Are they soft and need to go somewhere? Are they stubborn on price. What are they going to do next. Can you think of a way to assist them to achieve their new goals or movement in space.
Adjust your offers as you learn more about the Seller. Go up on price, go down on price. Seller Take Back a mortgage lst or second, whatever. Can you buy with no money? Can you buy with just bringing all payments current and a small second with little if any interest cost. to the Seller as consideration of sale.
Do you see what I am trying to say? You need information on the Seller because this is what you need to direct your adjustments to offer.
Go for it. Good luck. It's really great when you really love and want and find the perfect house. I'm still looking.
Lucius