Earn More from Foreclosed Properties

You can make money in the foreclosure property sector if you are able to identify and acquire the right properties that your potential clients want. You might also know where the more attractive properties are, but there might be many other realtors looking in what you’re interested in. Therefore, you should also know how to get ahead of the competition.

The following tips can help you earn more in the foreclosure market:

1. Take an open but smart attitude about foreclosure auctions.

Auctions advertised as full of attractive but bargain foreclosure homes most often feature a lot of properties that are hard to sell. Sellers use auctions to feature their hard-to-sell properties hoping that the atmosphere of auctions make the properties saleable. On the other hand, auctions sometimes feature really attractive properties that were not really marketed properly.

2. Lowball when you hold all the aces

When a foreclosure property has been on sale for several weeks, the property could be overpriced. The realtor then can offer a much lower bid. According to Sean O’ Toole of ForeclosureRadar, property owners and banks are more willing to entertain lowball offers if they see signals that the market is not interested in their properties. O’Toole also says that the month of December is a good time for making lowball offers as financial companies want to use all ways to improve their performance for the year.

3. Do not lowball when the seller holds the aces

ForeclosureRadar’s chief executive Sean O’Toole, who has acquired and sold over 150 foreclosed homes, advises realtors to offer an amount close to the asking price when they are targeting attractive, affordable foreclosure properties. According to him, banks entertain low-price offers only for properties that have not had received offers for weeks or months.

For a really good foreclosure house, offer both a quick escrow and a good price to beat other buyers.

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