foreclosure

Killer Mindset For Today’s Market

Mario AvalosLeave a comment

White LionBuyer mindset for today’s market. What’s it like? How must you think to score the right deal given an opportunity?

The only way I can describe what you must be: patiently aggressive. Now…what the heck is that?

Today’s market consists of a historic low inventory. Add to that the portion that is made up of foreclosures and short sales. These type of properties are usually priced from fair market value up to 10% below it. This combination has created an outrageous demand for good homes in good areas.

Patiently aggressive buyers are like tigers hunting for deer after months of hunger. They wait for the right deal to cross their way because they know its coming. And once it comes, they don’t think. They act. They don’t plan. They execute. They don’t compare, analyze or start pondering if there is a better deal out there.

And in today’s market, for you the buyer, this is the right mindset you must have in order to score on a great deal. Ever heard of the saying, ” the deal of the century comes once a week”. Well, in this market, its coming once a month. So you must be ready.

Off-course, nothing is ever done without the right preparation. And where do you start? With a real estate agent?

Before stepping onto your car to view a single property, a real estate agent must explain to you three factors and not just simply throw you into a safari with a blessing. The three factors are:

  1. Expectations of how the market is, or how are other buyers’ conduct in buying properties so that you know how to compete in order to score a deal. Yes…as much as you may not think…this is competition. You are competing with other buyers.
  2. The process of making an offer within 24 hours from viewing the property.
  3. What are all your “ways out” of a contract after you submit an offer to a seller.

In conclusion, the above explanation is for buyers that claim they want a “hot deal”. And most buyers do. The problem is that lost of buyers and or their real estate agents are not aggressive by nature.

Submitting Offers Without Success?

Mario AvalosLeave a comment

Despite the media hype about the overflow of real estate homes, buying a foreclosure in today’s market can be complicated. Without the right advice and guidance, buyers often become de-motivated, fed up and tired of submitting offers to countless foreclosures. Here is my simple tip for increasing your chances of scoring a good foreclosed home…submit an offer above asking price….higher….higher!

Why? REO sellers price their properties below market value. This is a tactic utilized to lure in as many buyers as possible offers, house, successfull, bid, bidding, closedinto a deal at the same. The lower the price, the more people find out about the property.

The more people find out about the property, emotions run wilder. And the more wild emotions get…the higher offer amounts people submit relative to the asking price. Off course…there is no need to submit offers above fair market value, but definitely above asking price. It is very usual to see 4, 5, 8, or even 10 offers on a particular property.

In addition, knowing what terms (non- price related) should accompany an offer is key to a successful bid. Say you are financing a deal, yet we know we are competing against cash offers. Well, cash offers mainly have two contingencies that protect them (which is why sellers prefer cash as opposed to financing where you may have at least 5 or 6 contingencies that protect the buyer)…the inspection period and clean title.

For a buyer that is financing a deal, your inspection, appraisal, title, letter of commitment and so on…must be super aggressive in order to entice the seller to choose your offer over the cash deal. It’s tough, but doable.