Foreclosure Banks Make Huge Mistakes

There’s a fascinating thing happening in the real estate market right now across the country.   I’ve seen in right here in Clallam County several times.   A home that was foreclosed on and is now for sale in the MLS receives a reasonable offer from a pre-qualified buyer, and the bank kills the transaction demanding unreasonably high prices.

I’m not kidding.   Sure, we all have heard the story of the buyer who got lucky and snatched the deal of the century, a home for $100,000 less than its fair market value.   We probably all heard the same story about that same guy.

But seriously, imagine a bank countering back and forth on a foreclosured home for sale and killing the deal over $5,000.   It happened.   Imagine a foreclosure in the MLS for $300,000 (plus or minus to disguise the actual listing) and the bank refusing to accept an offer from a pre-qualified buyer at $279,000 (plus or minus), when that is actually a fair offer.

The word is that banks don’t really want to own real estate.   That may be true, but try telling the clerks on the east coast in the loss mitigation departments of those banks that they are killing good transactions.   They don’t know our market, and most of them probably never were in real estate sales or negotiations of any kind.   It’s crazy but true.   I’ve written about the chaos in the foreclosure market.   Believe me, it is chaos in the foreclosure market.   But don’t expect any great deal.   The banks wouldn’t know a good offer if it landed on their desk in New York.

What’s your best opportunity to buy a great home at a great price?   A home in the MLS that is not a foreclosure or a short sale.   This comes from a full time Realtor who has been there, done that, and many times for many clients.   Don’t waste your time hoping upon hope that you’ll be the one to get a steal on a foreclosure.   There are plenty of great homes for sale by owners who are not in foreclosure.   They are more willing to intelligently negotiate than a bank on the east coast.   By a long shot.

Last Updated on September 9, 2009 by Chuck Marunde