I am sure you have heard the old real estate mantra- “Location, Location, Location“- but now it is “Timing, Timing, Timing“!
The bank owned market has changed how real estate is done all over the Phoenix Valley. The latest information coming from the asset managers who mange the re-aquisition of homes is that as of October 1st – the banks will begin releasing the over 45,000 homes that they have been sitting on for the last 6 months.
We have dropped our inventory by almost half since this time last year- which has driven up demand- not to mention that investors are buying up properties at rates we haven’t seen since 2005. We are seeing multiple offers on properties and homes selling for 10% over asking price.
If you are thinking of purchasing a foreclosed property – here are some tips:
1. Play the Game– make sure all paperwork is in order (this of course is where I come in!) You will need a copy of the earnest money check (banks want to make sure you can fill out a check properly…), and either proof of funds if paying cash, or a Loan Status Report if you are financing
2. Cash is King– banks love cash offers and will take a cash over a financed offer regardless of price. While this is not possible for everyone- a Conventional loan is second best. If you are able to put 10% down- do it. You will have a better chance of winning the property. Many of the bank owned homes will not qualify for VA or FHA loan programs due to their condition. I know what the appraisers are looking for- so I can help you determine if a home will qualify for FHA or VA loans.
3. Multiple Offers-Multiple Homes– banks are taking multiple offers to review- why shouldn’t you submit offers on multiple homes? Find a few homes you would be happy with- and get your offers out there. One is bound to come thru, right?
4. Hurry up and Wait– bank owned homes are selling within hours of coming on the market- so get your offers out quickly. However, prepare to wait for a response. Banks are taking up to 15 days to choose an offer.
I hope this information is helpful. If you are currently set up in my email Portal system- let me know if I can make any changes to your criteria. If you are not and would like to receive email updates as new homes come on the market- please contact me.
Have a wonderful day!
Lisa Borel-Kelley-Realtor
West USA-Kierland Office
Direct-480-329-1890
lisa@landdgroup.com
Lisa Borel-Kelley's (Realtor) Blog 