Central Ohio Home Source

I just recently saw this funny video that pokes fun at the frustrating process buyers are having in trying to take advantage of the bank owned foreclosure “deals” that are out there.  Obviously, the producer of this short film exaggerates some of the frustrating factors, but most are based on reality. 

The guys that made the video are in Southern California, where the market for bank owned foreclosures is actually super hot right now, so the “714 offers” part may be closer to reality there than it would be here in Columbus, OH.  But buyers here are experiencing cases where a house recently listed goes into contract within a couple of days, and they are “left out in the cold”.  It is generally the homes that are in good areas, but are priced very low that get snatched up quickly.  

Buyers (and their agents) need to realize that Listing agents owe their full duty and loyalty to their clients, which in this case happens to be a bank.  When they are dealing with agents representing bank owned foreclosures, the agents are following the guidelines and directives of the bank.  The communication lines are often delayed a bit:  an offer can be submitted, but not get an answer back from the bank for two or three days.

It helps to know your market.  This means you need to understand the house values in the neighborhoods in which you are searching.  Know what is selling, know what is not selling and why.   So if you are looking for a home in a certain subdivision, and most homes in that neighborhood that are in good condition are selling for $150,000,  a bank owned foreclosure (in similar condition) in that neighborhood will NOT sell for $80,000.    The listing agents that the banks hire are going to be very savvy, and WILL know the market.