Bank owned properties (Called REO = Real Estate Owned) are often great deals. They are priced for a quick sale.
Generally REOs generate lots of acitivity as soon as they come on the market. The bank usually requires anywhere between 3 and 10 days marketing time. This means that the agent will collect all offers and submit them on the day the marketing time is up. There are also submission guidelines which vary from each property. For offers with financing the buyer must be pre approved by the designated lender (varies). The purchaser does not have to use that lender and can pick his/her own once there has been acceptance of the offer, but the pre approval must be by the required lender.
Cash offers must be accompanied by 'proof of funds'. That is either a bank statement or a letter from a financial instituition.
If there are any violations (such as a non conforming downstairs) the offer must be cash.
Incomplete offers (without all addenda, pre approval etc.) never even get to the bank/owner.
REO's sell rather frequently above asking price. All offers generated are submitted at the same time. The bank looks for the highest offer and takes that. Unless there is only one offer the bank usually does not counter but simply takes the highest bid.
If an REO does not sell the bank has a time schedule at which to lower the price. Those are sometimes the best deals because through several price reductions they are now a steal but some agants don't check price reductions every day and might not even be aware of changes.
These are all REO's currently on the market in the Keys: Click here
It has never been more important to have an experienced agent than it is in this quickly changing market. If you are looking to buy or sell please contact me at 305-393-0923 or Veepka@aol.com