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This key information from ForeclosureDeals.com helps ensure that you bid right for a real estate sale, and optimize the profit you could make.
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Contents
Introduction…………................…….……1
Know Fair Market Value.................…2
Evaluate What Needs to be Done.....2
Find out the Broker Price Option.....2
Adjust for Location…....………………… 3
Bid Right for a Real Estate Short Sale
It is well possible to buy a short sale property at a ridiculously low price and flip it on for a huge profit right away, but it is important to know how to bid right before buying. The way to do it is to have a logical offer and convince the buyer accordingly.
2 Know Fair Market Value
Fair market value is what others have paid for a similar property. Find out comparable sales in the same suburb in the previous twelve months and ditch the 25% highest and lowest. The average of the middle 50% is a fair reflection of what the market is likely to stand.
Evaluate What Needs to be Done
If your target property is in average condition, then the fair market value is a good guideline. If a great deal needs to be done though (like re-roofing or rewiring), then reduce the fair market value by that cost. If it is impeccable, you may need to pay more.Find out the Broker Price Option
The lowest offer a lender will accept is called the broker price option. This is the least they will agree on an auction - and this may be up to 20% below fair market value. Your bid should lie somewhere between these two points.
3 Adjust for Location
So far, we are dealing with price trends in a suburb. But suburbs have good and bad spots too. If a home is on a busy road, you can bid less than for one in a quiet neighborhood. The condition of adjacent properties has an effect too.Foreclosure Deals12550 Biscayne Blvd, 306, North Miami, FL 33181FAX: [email protected] it’s not a deal, we won’t list it here!
Find us on the Web:www.ForeclosureDeals.com
By following this advice, you can evaluate properties listed on ForeclosureDeals.com more effectively and bid right at a real estate short sale. You will also have all the ammunition you need to convince the seller and the lender to accept.
