With the great deals on homes on the Central Coast comes a certain frustration level in trying to purchase one. Buyers are finding a lot of unwanted competition when making an offer on a home. It is not unlikely to have 10-20 offers submitted on the same property. This is due to the lack of inventory of homes for sale and the great bargains available through bank-owned properties (REOs and foreclosures.)

How can you increase your chances of having your offer accepted by the bank who owns the foreclosure you want?
1. If possible, pay cash. Cash buyers are considered “gold” to the lender and have the strongest chance of being accepted. Unfortunately, this makes it very difficult for first time buyers and buyers with little down payment. But don’t let that discourage you, because things could fall in your favor. We have been able to get offers accepted for our first-time buyers.
2. If you need a loan, get pre-qualified for it before you try to make an offer. It’s absolutely necessary.
3. Be willing to offer more than the listed price. With this much competition, foreclosures are often selling for more than the listed price. Be realistic with your offer. Don’t expect to get a “deal” on the “deal” when you’ve got this much competition.
4. Find an agent who knows how to negotiate, who has experience with bank-owned properties, knows how to advise you, and be loyal. Here’s why: Real estate agents are trying to make a living just like everyone else. It makes sense that they are going to work hardest for those who they know are loyal to them as it means they will be compensated for their efforts.