Going, Going Gone! The Early Bird Gets The Worm.

So you are looking for the deal of the century.  Possibly a foreclosure?  Every few months I will get a showing request for a home like I did today.  I take one look at the listing sheet and just shake my head.  The home is a newer ranch home in a very desirable community and it is listed for $91,000 less than the assessed value of the home.  To make the math simple and keep things in perspective, a $250,000 home selling for $150,000!  The home has been on the market 7 days.  It’s a VA loan foreclosure and all offers require a Countrywide pre-approval letter with submitted offers.  So what are the chances of my client who has a home to sell first being able to make this purchase?  Well, I immediately call the listing agent and find out that they have 12 offers that were submitted to the VA yesterday.  A multiple counter offer is going back out to the perspective buyers for highest and best offer.  This is where the real cat and mouse game begins.  As the bank will pit the buyers against each other until one lone buyer is standing.  People that have lots of contingencies will often times be asked to drop them in order to stay in the hunt.  Only the strongest and fittest will come out on top.  This is where cash is king and a stomach of steel pays off.  Someone no doubt will get them self a great deal here.  Stay tuned to find out how good a deal it turns out to really be.  Below is the information on the property.  But here is a list of things to consider when looking to maximize your chances of coming out on top in a situation like this.

• Develop a good relationship with an agent that you trust.  Trust is the big key in putting together one of these deals.  Find a competent professional get to know them and know how they work.
• Be ready to make a decision immediately.  Know the market or work with an agent that does and be ready to pull the trigger as soon as the opportunity arises.
• Have your finances in order.  Make sure you have a current pre-approval letter from a preferably well known local lending institution.
• Have money to put down.  The more the better.  If you can pay cash and refinance the purchase later that is even better.  Cash is king.  Be sure you can provide proof of funds as they won’t take your word for it.
• Have a home inspector that is ready to go as soon as you are.  If you have the ability or confidence to skip a home inspection all the better.  These properties are being sold “as-is” anyway.  The only benefit of a home inspection is to identify any unexpected surprises.
• In Wisconsin, many of the homes like this one are winterized.  You will be unable to test plumbing as it has been drained and protected with anti-freeze.  The gas is off to the home and the ability to test HVAC is probably not possible
• The electric may be cut off so bring a flashlight to check things over thoroughly.
• Most of these homes need work.  Expect the worst and be surprised if the worst doesn’t happen.
• Patience is also very important.  Have you heard the phrase: hurry up and wait?  In these situations you need to be “Johnny on the spot” and be patient when waiting for responses from the bank.  Some banks work particularly slow other not so much.  It’s the luck of the draw.
• You may need to go through this process several times before you find success.  Lots of buyers give up after loosing the first property and because the process wears them out mentally and emotionally, they end up buying a home where the process is not so atypical.

If you live in SE Wisconsin and are up for the challenge let me know I will be happy to walk you through the process.  Call or email me, Troy-414-688-3678 or troy@chowanec.com