Bidding Wars on Tampa Foreclosures Heat things Up!

biddingwarforeclosuresIt is no surprise to me that we are having bidding wars on Tampa Foreclosures as of late.  Sometimes it is difficult to get clients to understand that the properties they are interested in are not at LIST PRICE!  List price is what prices were back some couple years ago and the banks have taken a pounding on what they were owed vs. what they are valued at now.  I can tell with great certainty, if we do an analysis on what a property is worth, and it comes in pretty close to what the bank says it’s worth, odds are that the bank is not going to go much lower than that.  If you ask for closing costs, keep in mind that this lowers your offer price.

Let me explain so you can see why your offers are not getting accepted.  Lets say that a property is listed and is bank owned.  The price is $100,000 (this is market value).  Ok, so you come in and offer $90,000 and ask for 6% closing costs.  You just added an additional $5,400 off the offer price and now your offer is $84,600.  So now your offer is $15,400 off of their asking price which is market value.  This is 16% off of asking price…not very good.  This would be a much stronger offer if you came in at $100,000 and 6% closing costs.  This is still reduced by $6,000 but is much stronger of an offer even though you are now at $94,000.  The bank looks at the bottom line, so you need to make sure that bottom line is as close to their line as possible.

Also, make sure you hire a professional that understands the business, such as Team Masse Realty Group.  We deal with many clients looking for a deal, but there is a difference from looking for a deal, and trying to rob the bank.  The bank would rather sit on it, then loose thousands below market price, especially since the market is starting to move up!

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~ by ToughGuy on July 21, 2009.

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