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Emily & Jason Ryan
Ryan Real Estate Group
Looking to buy property in Myrtle Beach? My Jason Ryan and Associates is and authorized listing agent for Fannie Mae. Fannie Mae is offering a program called a HomePath Loan whereby a homebuyer can purchase a qualifying Fannie Mae property for as little as 3% down. Call us for details 888.360.7263.
Ready to Make an Offer?
"How much should I plan to offer...I mean...it is a foreclosure! I am sure the bank is dying to get it off of their books."
We're asked this question often and 90% of the time, our answer is the same..."If there are multiple offers already on the table... submit your offer quickly and I'd recommended that you offer full price!"
Let me explain...Banks seek out the help of experienced realtors and appraisers to determine the lowest fair-market value of a property. The property will be priced lower than other homes in the neighborhood, or lower than other condos in the building, because banks are not in the business to sell real estate. If repairs are needed, the sale price will be even lower, because the costs to make repairs are deducted. If multiple offers are on the table and you make a full-priced offer, you WILL still get a good deal!
If there are no other offers, (you can ask your realtor to gather this information) still go in with a strong offer. I had a property listed with a $200,000 sales price. An agent submitted an offer for their client of $140,000. The bank would not even entertain the offer...the bank didn't even counter! 15% below asking price is a good starting point for submitting offers...if there are no multiple offers. Again, even if you end up paying full price, you still will get a great deal and have instant equity.
If you submit and offer and at the same time, other offers are coming in, you'll be asked to submit a "Highest & Best" offer. This is when you decide how much the property is truly worth to you...offer your maximum purchase price. If your offer is the highest, you win!
One more note...it doesn't matter if you are planning to pay in cash or financing. Although it would seem that a cash offer is better, banks will still take the highest offer presented. On your offer, you'll also want to have a short time frame for closing to take place. 30 days is a good number.
There's still more to learn, so call us at 888.360.SAND for additional advice. Best regards!