Foreclosed Homes – Making a Successful Offer on a Property

There are plenty of foreclosed homes in the US at present and this is presenting a great opportunity for first time home buyers, rehabbers, wholesalers and other kinds of investors to buy discounted property. Although this property is not available for pennies on the dollar, the discounts investors are able to negotiate when they make an offer, are quite substantial in terms of the traditional real estate market.

It is a buyers’ market chiefly due to the fact that so many foreclosed homes are flooding the market. If you do happen to be and investor who makes an offer on a foreclosure property the lender of bank you want to buy it from may want to publish a “notice of offer” in a local newspaper.

This indicates that the bank is still willing to look for better offers, so you need to make sure that you have done your homework and have made a fair offer. This notice of offer expires after a certain date determined by the bank and if they receive no better offers, you can be pretty certain that they will accept yours. You will also more than likely be given the opportunity to match any better offers made.

One thing you will definitely find if your offer is accepted is that you are going to have to pay for any necessary repairs and essential services. Utilities will have no doubt been discontinued and you will have to have them reconnected. Because of repairs and reconnection fees you are also able to negotiate discounts in terms of they offer you make, so it is wise to have a complete survey of the property made before formulating your offer. Also remember to insert a “subject to inspection” clause when making an offer.

You have to be sure that none of the previous owners bad credit reflects on you. This may crop up as a result of having the same address, but can be sorted out relatively easily. It is just a matter of checking with credit agencies such as Experian, Eqifax and Callcredit to let them know you are living at the address and are the new owner. It costs $2 for them to give you the information they have on you, and thereafter you are able to change details.