Got Foreclosure! - Blog

“Find Motivated Sellers!”

That’s by and large the best way to find a bargain deal in real estate. Any “guru” will tell you that, and even most real estate agents will acknowledge that “motivated sellers” are more likely to accept an offer below the asking price.

 In fact, isn’t that what they’re indicating when they put “seller motivated” in the property description of their listings? Well, in an REO and buyer’s market, the “seller motivated” tag can signal to the potential buyer that it’s better to wait and see how motivated the seller really is. - Let’s come back in a month or so and see if the price has been dropped.

Now, what if the seller is a bank or lender?

In that case you can come back in 90 days and see if the price has been dropped 3 times yet.

What’s up with that? Isn’t anyone at the asset management departments smart enough to see that “cutting your losses early” would help prevent an even bigger loss?

As far as I can tell after talking to many REO brokers and asset managers myself, lenders are confined to using the “rear view mirror” when making selling decisions on their non-performing assets. “We’re using only sold comparables to determine value,” is a statement you hear frequently when negotiating a low offer. Guess what, in a declining market, sold comps are higher than what you can sell your property for.

Is there a better way?

Of course! Contact the bank BEFORE the property goes to the MLS listing. The time frame between the trustee sale and when the property hits the MLS is a great time to cut deals.

How to find these properties

It couldn’t be simpler: Just run a search in the search from below, and select a bank owned property you’re interested in (the ones with the red circles).

Submit your search for details…

Happy bargain hunting!