Buying a Bank-Owned Home With Multiple Offers
Buying a bank-owned home while there are multiple offers on the table can be tricky if you don't know the ropes. Whether you are purchasing the home for an investment, or for your personal residence, you wouldn't be purchasing the home to begin with if you didn't really like something about it. If you don't go about buying the home properly, you risk losing the home all together.
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Instructions
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Call your loan officer, if you are obtaining a mortgage to purchase, and request a pre-approval letter right away. Since time is of the essence, have him or her fax or email the letter to you immediately. You will need this to present to the bank with your offer.
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Meet with your agent to discuss the comparables, or recent home sales. At this time, decide how much you want to pay for the home considering the recent sales and your desire for the home. Your agent can run a list of homes that are comparable to the one you want to buy, and you can determine a fair market price for the home.
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Determine the amount you want to pay for the home. Since there are multiple offers on the table, go in with your strongest offer up front. This is not the time to offer a little less and hope for a counter offer. Offer your top dollar amount from the beginning in order to have a chance.
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Discuss with your agent what terms you need. Aside from the bottome line price you offer, banks also look at the terms. They want to close right away, and they want as little contingencies as possible. An offer might be written contigent upon a home inspection, a survey, a well insepection or septic inspection. Do not ask for contingencies unless you absolutely must have them.
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Make certain your agent submits the offer as soon as possible, and be certain he or she has included all the requested documents. Sometimes bank owned homes come with additional addendums that are to accompany any offers to purchase. Complete them and send them in as well. Do not give the bank any reason to doubt your offer.
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Tips & Warnings
Move quickly, time is of the essence.
Be patient, often times banks takes several days or even weeks to respond.
