Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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3rd Thing You Should Know About Buying Foreclosures in Gilbert, Arizona
In the first two installments of this series (1st Thing You Should Know About Buying Foreclosures, 2nd Thing You Should Know About Buying Foreclosures), I wrote about defining Terminology and Pricing as they relate to “Things You Should Know About Buying a Foreclosure.” Here’s the third post of the series:
- Multiple Offers – If a Foreclosure is in decent condition and is priced aggressively, the property will almost always attract multiple offers from multiple buyers in a very short time. When that happens, the bank’s asset manager will sometimes simply choose the offer/buyer that s/he likes the best, and the other offers will be rejected. However, sometimes the bank’s asset manager will issue an invitation for all buyers to submit their “Highest and Best” offer by a specified time (typically within 24 hours or less). Such ‘verbal’ negotiations are done via email between the listing/seller’s agent and the buyers’ agent, but with this technique each buyer is given the opportunity to modify the price, terms and/or conditions of their original offer. And of course, the bank’s objective is to secure the highest and best offer possible.
If your Buyers’ Agent has run the current comps, and you’re confident that the property is priced well and will most likely attract multiple offers, then you might want to seriously consider submitting your Highest and Best offer – upfront. Every buyer wants the lowest and best deal possible, but all factors and circumstances of each individual property must be taken into account. If the property appears to be priced above current comps, then you can adjust your offer strategy accordingly. Just remember that if multiple offers are submitted on the property, your chances of securing a successful contract are drastically diminished if you don’t submit a very competitive offer.
