Is it 2005 all over again? It sure fells like it when it comes to the Phoenix’s real estate foreclosure properties for sale.
From AZCentral.com - Lenders stung by the housing bust are slashing prices dramatically to rid themselves of an unprecedented number of foreclosed properties, sparking bidding wars in some places that harken back to the market’s go-go years and may signal the bottom is near.
Just today I visited a bank owned home in Gilbert, AZ with a client that had been on the market for two days. The home had a very attractive list price and I knew it would get alot of activity from interested buyers. A short time later I found out that there were already 8 offers on the home. A few years ago it was the norm for a newly listed home to have multiple offers in a day, sometimes even hours.
This isn’t the first time I’ve run into this feeding frenzy on bank owned homes and I am sure it wont be the last. Many lenders are using what I like to call the eBay pricing strategy. Start it low and let the buyers bid it up, in some cases paying more for the home then other recent sales in the neighborhood. Phoenix area foreclosed homes are being listed at very low prices and buyers jumping to get in on the action.
A word of advise; Don’t get caught up in the bidding fenzy.
Be sure to review the recent comparable sales for the area and set your offer price accordingly. If you miss out because some other buyer was willing to pay more don’t worry another opportunity will come along shortly.
Keys to success
- Get to the home as soon as it is listed. I have had success putting in an offer for a client before anyone else does and getting it accepted by the bank. If you can be the first to the table there might be a chance to lock the home up and get it off the market before anyones else has a chance to see it.
- Have your financing lined up. Having your ducks in a row when it comes to being pre-qualified for a mortgage will allow you to get your offer in quickly. The last thing you want to have happen when you find a really good deal is to be waiting for a lender to pre-qualify you so you can write an offer. Remember, the clock is ticking and every minute wasted gives the competition the opportunity to submit their offer for the home.
If anyone is interested in buying a foreclosure/bank owned home I can setup you with a list of available homes and notify you as soon as new foreclosures come on the market. Just drop me a line (use the contact form on the right side of the page) and let me know what area you are interested in and specifics (# of bedrooms, minimum square footage, max. price, etc.) about the homes you would like to see.
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