Originally posted at www.bigbearilluminated.com
This is a bank owned property I just closed escrow on this Friday. This home had suffered around 80k in fire damage last year. I did the comps and determined that this home would probably sell between 480k and 520k, if it was rehabbed. The home was priced at $229,000. My client started out at $200k with no contingencies, a 10 day escrow, and all cash. It turns out several other buyers liked it as well. The bank countered back with best and final on all offers. I told my client if he really wanted this home than he needed to figure out how high he could afford to go and then make a maximum bid. So, we bid $253,000, all cash and we got it. We were lucky due to an even higher offer coming in right after ours was accepted.
This just goes to prove a point I have been telling my clients all along. The good bank owned properties are going to sell quickly for either full price or above. If you try to low ball the good ones, you are only going to waste everybodies time and miss out on the property. If you really want it, make a good offer and be prepared to go even higher if you have too. If it is an undesirable home that has been on the market for months, that is a good candidate for a low offer. You are either going to get a great house for a fair price or you are going to get a fair house for a great price.
A full time Realtor, working in the most beautiful town in Southern California.
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Great Job Izzy!
You are absolutely correct. I am seeing these homes fly off the shelf - but beware not to get emotioanlly involved or you will end up paying more than it is worth.
Steve-Thanks man. You are an inspiration to me!
Adam-Yes indeed. You must be prepared to walk away if you can't get a good price on a home you want.
Way to get the job done, man! Your advice paid off for you client and you can bet that the others out there that are reading your posts are getting a good, solid, hands-on education from you. Keep it up!