Banks Not Giving Houses Away

Contrary to the media's belief that inventory levels of bank owned properties are so high that the banks will take anything we have found a bit that banks are holding their ground on many of their properties.

Bank owned properties (also known as REO's and Foreclosures) are currently being priced about 10% below the rest of the traditional resale inventory. This price point has enabled them to get showings, but many consumers feel that since it is bank owned they can offer whatever they want. Although we do empower our customers to write competitive offers for discounts there does appear to be a threshold that the banks will take.

On properties offers from Long Beach to Riverside we have found that the banks:

1. Will still discount off of their current list price (sometimes another 3-5%)
2. If it is a new listing the bank is usually less likely to give up big ground on price
3. Banks will counter offer! They aren't desperate enough to take anything
4. They have been willing to provide termite clearances in some situations
5. They like thorough offers with pre-approvals, FICO scores, and proof of funds like a traditional seller

Keep your eye out for the foreclosure, but act quickly. The well priced foreclosures in prime areas are often receiving multiple offers.

It would be great to hear what situations others have come across in their experience. We look forward to the comments!