One of the expectations that some Buyers have is that they will be able to offer pennies on the dollar for a foreclosure and the bank may take it.
Of the 469 REOs sold in SLO County this year, 59.49% of these were sold within the first 30 Days on Market. The Average Sale Price was 100.04% of the Asking Price. Some are getting multiple offers and going over the Asking Price.
Most banks won’t seriously look at low-ball offers until the home has been on the market for awhile but even the ones that had been on the market over 120 days sold for 93.61% of the Asking Price. If you’re looking for a good deal, here’s what I suggest:
1) Get your financing lined up and ready to go. Banks like cash offers which may help you in a multiple offer situation.
2) Make sure you are working with an experienced Realtor (like the Keith Byrd Team!) that knows when new REOs hit the market and can quickly determine if they are a good deal.
3) Don’t limit yourself to REOs. Other homes are coming to market that have a good price and may be a better deal than a REO. Your Realtor should help you find these gems too.