Point Blank – Writing a good offer is writing a good offer. Price is most important, then close of escrow, contingency terms and then buyer qualifications. Just about in that order. So when a buyer is faced with writing an offer on a Bank Owned home – it is just about as easy as writing an offer on a home where the buyer is working directly with the seller.
The Caton Team Realtors, will provide the buyer with comparable market information – homes of similar condition and size – and what they are selling for. Armed with this info, the buyer can decide a fair market price to offer. Since the home is bank owned – the bank is very aware of the homes market value and has elected to sell the property in the open market instead of an auction – most likely because the bank will get more money in a normal sale versus an auction. So our advise to a buyer – be realistic in your offer price. Too low and the bank will move on, there can be some back and forth counter offers – but generally it is cut and dry or the bank will hold onto an offer till a better one comes along. (At least that is how it feels to the waiting buyer.)
Next are the terms. A bank owned home can move MUCH faster than a short sale. A buyer will want to keep their property and loan contingencies tight – 10 – 17 days and generally a 30 days close of escrow is acceptable – if not shorter since the home is already vacant.
The downside bank owned homes – no disclosures except for the CA State Mandatory Disclosures – but those pertain more to the area than the actually home. Why? The bank has NEVER lived in the home and cannot disclose if there are neighborhood nuisances, or if the downstairs bathroom floods every years. So it is more buyer beware – however – once a buyers offer is accepted, they will have their contingency time frames (stated in the offer) to conduct any and all inspections they want and to make sure the home appraisals for their loan.
Sounds like any offer right? Right. Bank Owned homes are like normal sellers. The turn around time for an offer response in a couple of days – a week max. Meaning, when the buyer get’s the offer accepted phone call – the clock starts ticking for contingencies and in 30 days I hand them the keys 🙂
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