If you are one of the many buyers waiting for a good deal on a bank owned property in Big Bear, you probably know by now that you have to be quick with your offer to have a chance.
Many times a property will get multiple offers the first couple days on the market. If you think it is a deal, so do 100 other buyers waiting for such a opportunity. So what can you
do to give yourself a better chance? Be prepared and know what the banks are requiring these days before they even look at your offer.
Most buyers and agents are aware that many banks have their own purchase contract. This is one of the first places you can go wrong and waste time. While it really is the agents responsibility to
know what forms to use, sometimes they need a little reminder. Some listing agents make it very clear-that they have their own form-on the listing itself. This
is very helpful and prevents an agent from having to redo their work.
After you figure out what forms to use, you must also make sure you have all the other documents that the bank requires. These can be a pre-qualification by a specific lender. Signing addendum's
to the purchase contract, waivers and some times even proof of funds for your DOWN PAYMENT. Not having these items can delay your offer from being presented to the bank or asset manager. Often times
allowing other buyers, who weren't as quick as you, to get in the mix. Nobody wants to be in a bidding war, especially in a buyers market.
Things to have ready and strategies to make sure a bank gets your offer ASAP
1.)Pre-Qualification or Pre-Approval letter. Sometimes the bank will accept any letter, other times the bank requires you talk to a specific lender. Make sure you know what the bank you are going to deal with accepts.
2.)Proof of funds for a cash offer. If you are writing a cash offer the bank will need to see some sort of document from the bank to prove you have the funds.
3.)Proof of funds for the down payment. Banks are beginning to ask for this more and more. Even if you have already talked to a lender that has verified your funds, the bank will still want you to supply the proof.
4.)Use the correct Purchase contract the first time. Make sure your agent is proactive in finding out which contracts the bank in question uses. If you just use the California Purchase Contract by default, you may think you have an offer submitted and find out later that the bank never even looked at it.
5) Have you agent make sure you sign all the addendum's and waivers required by the bank. Sometimes these addendum's are very redundant and seem unnecessary but the bank won't take your offer serious until they see them.
6.)If you know something is a good deal, write it at full price or even a little above to beat out other buyers who are trying to negotiate. I have had clients write an over full price offer on a property within the first two hours it was on the market. The bank got three offers and just accepted the over full price one, without countering anyone. I only advise this when you know there are going to be multiple offers. Otherwise you may have time to negotiate.
Hopefully these tips help you in your search for a good deal on a Big Bear bank owned property. If you have any questions or suggestions, feel free to share them.
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