It’s always fun to write about my daily occurrences while pounding the streets. I must say, foreclosures are in full force right now and the banks are winning. The banks held off releasing inventory into the market in the 2nd half of last year and now that it’s sunny in SW Florida and snowing up north, they have opened the flood gates. There is so much pent up demand for buyers for these juicy deals that it has created serious bidding wars on what seems like every foreclosure that comes on the market.
I have personally bid on 5 homes in the last 10 days or so and every single one of them has ended up in a multiple offer situation and sold well over the ask price. As frustrating as this is, I give the banks credit. Right now they are winning the game by getting more for their properties than they would have last fall. The question is: as a buyer, what do you do to actually get one of these properties?
- Be prepared. Have proof of funds for a cash offer or have a preapproval letter from the lender if you are financing.
- Act quickly. Some of these homes are only on the market for 1 or 2 days. If you snooze, you certainly will lose.
- Go big or go home. If you want the home, be willing to bid over the listing price. In most circumstances the listing price is below market value anyway, so even going over will still net you a good deal if you are lucky enough to be the winning bidder! We have had buyers bid $40,000 over the list price on certain properties.
- Don’t worry so much about your first offer. Just get one into the bank. If you know it’s a good deal, so does everyone else. That means it will almost certainly go to “highest and best offer”, where the bank will ask everyone to make their highest offer and the bank will pick one and proceed with it.
- Don’t get fed up. This can be an extremely frustrating process. You’ll most likely bid and lose out on several properties. Stay in the game and if it’s meant to be it will work out in your favor sooner or later.
In a world of low real estate prices, low interest rates, and sunshine – what else can you expect? It’s kind of the perfect storm right now. How long it lasts no one knows – so get in while you can!
Need help Selling, Buying, or with Property Management? Gulf Pointe Properties would be glad to help! Please contact Gabe for advice at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com Gabe Mellein is the broker of Gulf Pointe Properties, He has 8 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.