First time/cash buyer concern..

**kerryberry** · 11-17-2009, 09:15 PM

I have been searching for a REO/foreclosure home for the past 3 months, gone through 3 agents, viewed a tleast over 50 homes and made at least 10 offers. All this and not one acceptance on a offer. I am working with an agent but I am begining to have doubts, is my paper work correct? Am I bidding too low on the offer. Right now we are waiting on the response from the bank on a 3/2 townhome built in 2001 going for $69,950, great area but needs lots of work (completely gutted out) we made an offer just a little above the asking price. However I am soooo frustrated being turned down again. What am I doing wrong?..I thought banks would grab up cash offers even at a lower price, but why am I being constantly turned down. Is there anyway at all where we could find out what price the bank would really take on a property like this.

Located in Coral springs, FL

**Greg** · 11-18-2009, 05:06 AM

What the bank has the property listed for shouldn't mean a thing. What your sales comps say the property is worth is what matters.

You don't say whether the offers you lost sold for more than the property was worth. If you are losing to buyers who are paying too much for the properties then they are the losers.

"I thought banks would grab up cash offers even at a lower price, but why am I being constantly turned down"

This statement tells me you have been submitting low ball offers because you have cash. Your offers don't get accepted and you blame the agents when it was actually the offers fault.

Write your offers based on what the market value of the property is. If it sells for more than market value to someone else, you win. If you get the property at market value, you win.

If you want to keep throwing low ball offers at foreclosures in the hopes of eventually getting one at a steal, then you need to be patient.

**kerryberry** · 11-18-2009, 08:15 AM

Thank you Greg but what I should have explained earlier was that with our cash budget of $110K we don't really have enough room to play bidding wars. Most of these houses we are looking at are pretty much extreme fixer upper's. However I am guessing it's so hard to compete with all these cash investors now. I am a bit frustrated and running out of patience. My agent was great help in the begining but I guess he is even running out of patience. I would like any input on other strategies out there we could approach the banks on landing a deal.

**Curtis McLain** · 11-18-2009, 08:42 AM

Greg hit the nail on the head hes not suggesting that you get in biding wars
what he is suggesting is that you evaluate the market and make a truly educated bid ask your agent for a market analyst of what similar homes have sold for in the past 6 months and bid accordingly.

if you are getting turned down that much then your offers are to low
yea banks love cash offers but they at least like them to be reasonable.