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How Do Banks Sell Real Estate?

As we know now is a great time to buy real estate in the Phoenix and Scottsdale real estate markets.  It is a great time to buy because there are so many options and so many great real estate deals!

One of the great ways to buy a real estate investment is to buy a bank owned home, a REO, or bank owned property.  I sell real estate in the Phoenix, Arcadia, and Scottsdale area for a bank.  There is a lot I have learned from representing a bank and seeing how they negotiate with potential buyers.

Here are some of the things a bank does when negotiating the sale of real estate.

1. They price their real estate based on recent comps within a mile of the subject property.  This might sound like a no brainer...but most people are emotional about the sell of their home, and most people have a number in their heads that they want to sell their home for.  That number usually has nothing to do with what is actually happening in the real estate market.  It is usually based on personal needs and wants of the home owner.

2. Banks will generally price their homes just under the competition.  When a bank owns real estate they want to sell it and they want to sell it for as much money as possible.  Most people what to price their home high...and come down later.  However, most banks will price their homes just under their competition so that it will sell quickly and for very close to list price.

3. Banks always list their homes with an experienced Realtor.  Banks know what their expertise are and they know that selling homes is not one of them.  Banks will always hire experienced professional Realtors to sell their bank owned properties.

Banks also negotiate much differently than people do...tomorrow I will go through how a bank negotiates the offer once they receive one from a buyer!

If you are interested in buying bank owned real estate give me a call!

Date: 2008-06-23 11:27:41
Views: 152

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