|3 Secrets to Buying Foreclosures|
The first secret is to make a reasonable offer. Many of us feel that the banks and asset managers are willing to take a dramatically lower price than the asking price. This is not the case. We can lose a good deal on a foreclosure by trying to make it a great deal. In order to know what we are willing to offer on a foreclosure home we need to cover the second secret. That secret is to be prepared with the supporting data in advance of making an offer. By checking the recent sales we can often see what the home should sell for under normal circumstances.
By knowing what other similar homes have sold for recently we are more likely to have a better idea on what to offer in order to make a wise but rapid decision on what to offer rather than a knee jerk reaction to the pressure that we feel when we are trying to make quick decisions. The last secret we sort of covered within the second secret. The third secret is to make a decision quickly and be determined. If we have done the two first secrets we are far more likely to be able to make the decision to either pass on the foreclosure or to make an offer. Foreclosures are as often underpriced as they are overpriced.
Understanding the difference between what a good price is and what a ridiculous offer is allows us to make the decision quickly. The reason for the value fluctuations is often because the appraisers for foreclosures are many times under a great deal of pressure themselves to get the appraisal done and move on to another. This haste can lead to great opportunities.