Foreclosures, what should I offer?

As a buyer's specialist, I tend to work primarily on foreclosures. While I really enjoy it, I've found that many buyers have unrealistic expectations. There are a few things to keep in mind when looking at foreclosures and making offers.

1 - When a foreclosure goes on the market, it is priced based on physical condition and market conditions. If physical conditions change, or market conditions change the price will be adjusted based on those factors.

2 - If and when you're considering making an offer, if it's recently had a price reduction there is a good chance that you will not be the only one looking at the property or making an offer. If you do decide to make an offer, base it upon how you would feel if you didn't get the property.

3 - There is no percentage or standard amount that you should make your offer. Although you hear many times that foreclosures are selling for far less than asking price, I believe it's just luck. Additionally, as much as I'd always love to tell you how much to offer, I can't.

4 - If you're lucky enough to have your offer accepted, there will most likely be an extensive "as is" addendum. It's important to read through the addendum and understand everything including specific time frames (such as a home inspection).

With all of that said, when you're ready to start looking at homes and you come across a foreclosure...keep these concepts in mind!