There is a slew of bank-owned properties in Florida. These properties present a good opportunity for investors as they often come with a hefty discount. With that being said, it can still be rather difficult to put together the right offer on these properties. This is especially true if you have little to no experience dealing with this type of property. Now, this doesn’t mean that you should refrain from purchasing bank-owned properties altogether as you will surely be missing out on a lot of opportunities. So how do you go about doing this?
To help make things easier for you, we’ve composed a brief guide on how to put together the right offer on bank-owned properties. Hopefully, this guide proves to be useful when it comes to helping you get the best deal possible.
Look Into the History of the Property
The first thing you want to do is to look at the history of the property. This shouldn’t be too hard as all you’ll need to do is to request documents like the Trustee’s Deed. This document contains the bank’s purchase price of the property, which should give you a good starting point when it comes to putting together an offer. A good offer would be somewhere in between the property’s original mortgage value and its foreclosure sale price.
Conduct a Comparative Market Analysis
Looking at a property’s history is only half the battle. If you really wanna gain a better understanding of the price of a property, all you need to do is to conduct a comparative market analysis (CMA). Basically, all you have to do is to compare the price of similar properties to the one that you’re trying to purchase from the bank. This should give you a good place to start when it comes to putting together the right offer. When using CMA to come up with the right offer, keep in mind that bank-owned properties usually sell for a price that’s lower than their market value.
Find Out More About the Other Offers
Remember, the price of a property is determined by what someone is willing to pay for it. To really get a feel of the value of a property, all you have to do is to examine the other offers. If there are many offers on the table, you will likely have to offer a large sum of money in order to secure the property. On the flip side, a property with no other offers means you can get away without offering to pay a price that’s significantly lower than the actual value of the property.
Consider the Repair Costs
Lastly, you’ll want to consider how much work will need to be done on the property. While the property may be affordable, you’ll have to examine what state it is in. If the place is a fixer-upper, you may want to be a little more conservative about the price that you offer as you will most likely need to shell out resources to have it repaired.
Conclusion
You have to take a multitude of different factors into consideration when making an offer for bank-owned properties. While they do come with a significant discount, you’ll still want to be thorough when it comes to putting together the right offer on a property. Getting the best price on a property shouldn’t be too difficult as long as you do sufficient research and make the necessary preparations.
Orlando REO Professionals I, Inc. prides itself in providing quality investment properties and foreclosed homes to clients in the Central Florida area. Our team of listing specialists has all the experience you need to get the best deals possible. Trust us to help you find the best possible bank-owned properties in Florida. Contact us today to get started!