What can we do to increase our chances of having a bank accept our offer on their home?

Q: We have made multiple offers on bank owned homes in our area without success. What can we do to finally get an offer accepted?

Bank owned properties are a hot right now in the Central Florida area. Investors, first time homebuyers and buyers looking for good deals are competing against each other presenting offers on available properties as soon as they hit the market. While there are no guarantees, a buyer and their agent can take steps to increase their chances of having their offer accepted.

• Are you offering less than asking price? The time for testing the market or making low offers to sellers, especially sellers who are banks is gone. It is a seller’s market for banks and their listing inventory. Ask your agent to provide you with research for the area. Are bank owned property selling above list price? If so then offering less will continue to result in rejection.
• Make them an offer that is hard to refuse. Will your purchase be subject to financing? Strengthen your position by getting approved. Make sure the financing approval letter provided to you by your lender is strongly worded leaving no doubt that financing is not an issue. Being approved should allow you to shorten the contract time period from offer to closing. Instead of 30 days can you now close in 15? The cleaner the offer in terms of contingencies and time frames increases the chance your offer has of being accepted.
• Look for older inventory. There are situations when even bank owned property do not sell immediately upon hitting the market. Perhaps they were priced to high at the onset and the bank refused to negotiate early on. These same listings may now have received price reductions that make them good deals but since they are no longer fresh, they are ignored by buyers and their agents. Have your agent pull bank owned property that have spent a few months on the market and look for those with price reductions.

These suggestions may help you purchase a bank owned property. Of course there is more that just bank owned property on the market right now. You would be wise not to dismiss the regular home owner trying to sell their home. Short sales and motivated sellers/builders are offering some very good deals as well in this market.

Related Florida real estate views:

Most home buyers need to obtain financing in order to buy their home.

Making an offer at or above list price may be a wise decision.