Citibank foreclosures, like other real estate owned or bank foreclosure properties, are offered at very cheap rates. Most of these residences come in the market at almost 50% less than their original value which makes them some of the most affordable houses being offered to real estate investors and private home buyers.
Making a Good Offer
When trying to purchase an REO or a bank foreclosed house, a buyer needs to make sure that he shows the seller that he is really interested in purchasing the house and is not just wasting everyone's time. The best way to do this is to present a pre-approval letter, complete with supporting documents like tax returns and other information that will help Citibank evaluate the application.
To make a competitive but reasonable purchase offer, a buyer should ask his real estate agent to make a Comparative Market Analysis or a report on the prevailing market price of homes of the same type, size and in the same neighborhood. Usually, banks will price their properties a little higher than the amount they spent to acquire these properties. Buyers can make an offer price in between this amount and the prevailing market price.
Most Citibank foreclosures will require repairs, just like other REO properties that are sold in an "as is" condition. Before making an offer, a thorough inspection should be conducted by the buyer first. Hiring a licensed home inspector is a must, particularly if one is buying a foreclosed property. Buyers can make an offer for one of Citibank's residential properties with a clause asking for the bank to take care of some repairs or asking for discounts to accommodate the expenses that will be used on the repairs.
Although most banks will refuse to honor such provisions, there is still no harm in trying. If the bank stated that they will not work on any repair, try to negotiate for a price cut and cite the repairs needed as the reason for the request.
Buying Citibank foreclosures can be a wise investment. However, buyers should know how to prepare a reasonable and profitable price offer and should make sure that they do not lose too much money when it comes to repairing the property.