How to Make an Offer on a Foreclosure House
Foreclosure houses often come with the perfect price tag and are candidates to become a dream home for many buyers. But because these properties often are owned by banks, the process to make an offer can be tricky.
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Instructions
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How to Make an Offer on a Foreclosed Home
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Find an experienced real estate agent to help find and make an offer on a foreclosed home. Keep in mind that bank-owned properties are sold "as is," and offers can be rejected without hesitation.
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View the property with your real estate agent. Be sure to thoroughly inspect the foreclosed home, and look for any repairs that would be extremely costly. Also, view the home with a licensed property inspector to find problems that could go unnoticed to the untrained eye.
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Visit a loan officer to determine how much financing you might qualify for when buying a foreclosed property. When bidding against another potential buyer it is best to know the maximum amount you can pay for the property.
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Have your real estate agent compare similar properties in the neighborhood. This helps determine an offer based on fair market value for a particular home of interest, taking into account its cosmetic features, overall condition and location.
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Include a down payment. This signals to the bank that has repossessed the property the commitment to the purchase and increases the chances of getting the home. Banks also take into consideration the closing date. A candidate who is willing to close quickly, will be more likely to have an offer accepted.
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Tips & Warnings
While many of these steps can be done without a real estate agent, it is advised that you seek professional assistance during this meticulous process.
