Foreclosures are being listed at far
less than what they likely eventually will sell for -- a marketing
strategy that generates high interest and multiple bids, some say. As
such, buyers of foreclosures need to be prepared to move quickly and
come up with a lot more money.
For example, Liz Sidorowicz, a real estate professional with RE/MAX
Signature, says she helped her client submit an offer for a foreclosure
in Mount Prospect, Ill., for $421,000. The home was listed for $350,000,
but her client still lost out to a higher bid.
"I managed to win one out of five last week, but we overbid
significantly," Sidorowicz told The Chicago Tribune. "We got the unit
and then it didn't appraise. So we have to come up with more money down
to make the deal fly."
Some home buyers who bid on foreclosures have to learn the hard way just how competitive snagging a foreclosure bargain can be.
"The consumer gets burned on a house they really like once or twice,"
Michael Goodwin, an agent at Exit Real Estate Partners, told The
Chicago Tribune. "After that happens, they get war-hardened. The next
time they are ready to pounce. Not very often does it wind up being the
first house. It takes them getting slapped in the face."
Source: “Buying foreclosures requires patience, and a little more money,” The Chicago Tribune (April 5, 2013)