In markets where investors are rapidly purchasing bank-owned properties with cash, first-time homebuyers may feel that they are unable to compete. With the assistance of an experienced real estate agent, and using the tips below, you can improve your chances of purchasing a bank-owned property.
First, be ready to move quickly on a bank-owned property listing as “some banks will only accept offers from potential owner-occupants for the first 10 or 15 days that a property is on the market.” Second, ensure that you are prequalified for financing and have an inspector ready to help you evaluate the property you are seriously interested in buying. Third, keep in mind that price negotiations may be limited as the bank who owns the distressed property will be looking reduce further losses taken on the property. Therefore, the less contingencies you make with the offer, combined with not asking for closing costs, and at least 5% down payment of the purchase price, can increase your chances of winning the bid and closing quickly. You can find more helpful information at: http://on.wsj.com/lpRIzm