There’s a fascinating thing happening in the real estate market right now across the country. Â I’ve seen in right here in Clallam County several times. Â 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. Â 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. Â 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. Â It happened. Â 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. Â 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. Â They don’t know our market, and most of them probably never were in real estate sales or negotiations of any kind. Â It’s crazy but true. Â I’ve written about the chaos in the foreclosure market. Â Believe me, it is chaos in the foreclosure market. Â But don’t expect any great deal. Â 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? Â A home in the MLS that is not a foreclosure or a short sale. Â This comes from a full time Realtor who has been there, done that, and many times for many clients. Â Don’t waste your time hoping upon hope that you’ll be the one to get a steal on a foreclosure. Â There are plenty of great homes for sale by owners who are not in foreclosure. Â They are more willing to intelligently negotiate than a bank on the east coast. Â By a long shot.
Last Updated on September 9, 2009 by Chuck Marunde