Bank REO foreclosures are often sold at almost half their original market value so it is not surprising that a lot of buyers are interested in acquiring these types of properties. For a homebuyer, making an offer for one of these real estate properties can mean competing with others who may have the ability to offer a better price.
Playing the Waiting Game
It is to be expected that most banks will favor higher purchase offers. However, there are instances when timing is a more important tool than the amount of offer. If a buyer is interested in a bank foreclosed home and a lot of other buyers are also going for it, the best way to gain an advantage is not to join the rush.
Although instincts might convince a buyer to go with the flow, in this situation, it is better to sit back and wait for a few days. Let the property be open for offers for a few days and let the other buyers set the tone for the bidding. This way, the buyer can find out how much they are offering for the bank REO foreclosures and he can then formulate a better but reasonable offer.
Getting the Real Estate Agent's Help
The trick is to jump in while the bidding is ongoing and while other buyers are trying to get the better of each other. To gain an advantage, contact the real estate agent responsible for selling the property directly. Ask what offers were made and seek his opinion on what could be a better offer than the one they are currently favoring.
A buyer who seeks the opinion of the agent selling the home is actually building a rapport with that agent which could help his chances of getting his offer accepted. Showing the agent that his opinion is being valued might just tip his hand and a buyer might find his offer getting accepted over those of earlier bidders.
Of course, buyers of bank REO foreclosures should never bid beyond what they can afford. The best thing to do is to offer a slightly higher bid than the current best, but make sure that the deal is secured within as short a time as possible once it is accepted so that other buyers with better offers will not have a chance to change the seller's mind.