What to Offer?

In these days, it's not unusual to put your best foot forward when trying to buy a property. It depends on what type of sale is it. Is it a short sale, foreclosure or traditional sale?Why does this matter? Well, short sales and foreclosures,(also known as REO's) are in a whole different leauge when it comes to trying to aquire them. There is competition for such houses and in South Florida people are paying more than the list price, for REO's especially.If the homes you are looking at are traditional listings, then I would say, no, stay with the traditional approach. In a short sale situation, however, I would say, yes, it might be in your best interest to put your best foot forward. The reason why? Several actually.

First and foremost, I know that when buying a short sale you need the full cooperation of the listing agent, let alone the seller and the bank. The listing agent should know what type of contract they are looking for. Usually they want a solid price, a qualified buyer,of course but preferably cash, fair terms and the approval period to be 90 days. Making your best offer does not neccesarily mean giving just the best price, but the best price and terms. This shows the listing agent you are serious about buying that property. Believe me, a solid offer on a Short Sale is very important to keeping competeing contracts off the table.

Also, a lot depends if the short sale has already been approved or not, and if your contract is the first deal that the listing agent has had on the property. If your offer is say, the second or third contract on the property and the short sale has already been approved, and the other previous offers fell through, then for sure the listing agent should know what the bank need sto make the deal work, and that just might be the asking price.

When buying a foreclosures, depending on the property, it may be essential that you bid the asking price or even above. Again, I will be happy to email you reports showing this trend in my local market. From what I've found out, however, buying an REO is not just how much you offer, but who you know. In South Florida the market is now very competetive for quality REO's. If you're agent is not the listing agent for the property, you may not stand a chance. Also, some banks require that offers be made based on specific instructions. Make sure your agent knows how to your properly deliver you offer to the listing agent.

Thanks For Reading

Aaron Glassman, Broker/Owner
A-1 Realty Group, Inc.