Profile picture for caryzia

Bidding on foreclosures...what umm

Me again w/ another question...

I just was shown a phenomenal foreclosure prop that is extremely cheap. Less than $25K.I like the lot & the house a lot.Solid & needs only cosmetic work.Plus, the prop is valued at 4X the asking price.

I am pursuing a residence too, this would be a rental/investment prop.

I am not finding much online or in books, guess I should've looked it up here( but I'm already writing this so up it goes)!

In Tennesssee 'Fc's' are non-judicial...

My agent suggested putting in the minimum maybe a little more.I realize there are a lot of variables.
I'm leaning towards putting 15% more than asking price...

Any pointers and advice is much appreciated! Thanks



  • July 16 2010 - US
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Answers (5)

I would have your agent contact the listing and find out about how many competing bids there are if any.  Often with foreclosures, even the cheap ones other buyers will try to nickel and dime the bank and ultimately lose out.  When you have a few competing bids I would recommend my buyer go full price and then some like you are doing.  How much depends and how much you really want the property.  Either way you are obviously walking away with a steal.

Tim Papa
Ocala FL Homes
  • July 18 2010
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Profile picture for Mills Realty

Sit down with your Realtor and take a look at the comparable sales in the area.  If the property is truly worth 4X asking then bid what you are willing to pay.  Most likely there will be a lot of competition and you will not want to miss out knowing you didn't put your best offer in.

Simon Mills
Mills Realty

  • July 17 2010
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Profile picture for ABBAUSA
The advice I would like to share is to bid full price with concessions.

That works lots of the time.

I have seen $90,000 properties go for $30,000, but some of time bidding over the asking price is a sound investment.

I have seen many investors lose out on really good properties, because there cheaped out right at the last minute.

Get with your Realtor© and look at values around the fc property.
Bid what it is worth to you and the area. You should be able to secure many properties at below there true value.

Good Luck!

James Callas - Realtor®
 
  • July 17 2010
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I would listen to your Realtor's advice. He's the one who knows the local market and that's why you are using him.
  • July 17 2010
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If you are "bidding" then I take it that it's an auction ...and typically auctions publish really low minimum bids to encourage interest. Read the rules of the auction. Is it an absolute auction? ..or maybe there is a reserve price? ..meaning they won't accept a price lower than x. Or this could be a sealed bid auction and you will just have to submit your highests and best and hope you get it. Get your Realtor to pull comparables / do a market analysis and see if the home truly is priced right and what the real value is. Get yourself a really good home inspector that can inspect it and give you estimates on how much it will cost to fix things. Make sure you check out whether there are any structural issues. Are there any disclosures on the property?  Those could be useful. Banks don't like to lose money. If it's too good to be true....ask lotssss of questions. Good luck.
  • July 17 2010
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