There is one thing for sure, perception affects any market. You hear “buyers market” and buyers think they are going to get this magnificent deal on a home. Regardless of who owns a home, the owner’s want what the market will allow for that particular home. That is the case with bank foreclosures. Just because a bank took back a home does not mean you will get any better of a deal than if you bought that home from the original owner.
In some cases depending on the bank you can get a one of their properties for usually between .75cents to .90 cents on the dollar. But one thing I assure you is the bank will do what is called a B.P.O. on the property. The asset manager usually requests this from the realtor that will be listing their properties for them. B.P.O. is broker price opinion, which will give the real value of the home in that particular real estate market it’s in.
What’s does this mean for a buyer? Let me ask you this, if it was your house to sell wouldn’t you find out the true value of your asset to get some idea what you could sell that asset for? Absolutely….. You would. Banks done give homes away, they sell them to get that home off their books for market value.
So if you are in the market currently for a home, don’t get this idea that you will get a home for nothing just because the home is a foreclosure, even if that home has been on the market for 2 years. A bank or Asset manager is not ignorant. They know what the house is worth, and if you offer them some ridiculous offer they might refuse to deal with you period. Asset managers are extremely busy in this market and don’t have time to deal with offers that are a waste of time.
Yes, in some cases you can get a home for a little less than current market value, but you have to shop around and have a very experienced real estate professional at your side.
One more note, it’s called a buyers market because the homes for sale out weigh the number of buyers out there.
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