Times are changing for the foreclosure industry, and they are changing quickly. The good news for buyers is the changes are typically in their favor. There was a time not that long ago where maybe one in twenty homes sold in Arizona were foreclosures, then it went closer to one in ten and one in five. Now roughly 50% of all homes sold in Gilbert, Chandler, Tempe, Mesa and the East Valley of Phoenix are bank owned foreclosure properties.
In the old days (6 months ago) banks would be very picky with offers and would not do anything to help help the buyer. What we have seen very recently and what we are hearing is things are changing quickly. Banks have new competition, themselves. With the amount of bank foreclosures on the market, banks need to compete with other banks to get their homes sold. Because of that, their philosophy is starting to change. Banks are now at least more willing to think about helping to cover closing costs than they were even a few short months ago. Banks are also pricing their homes more aggressively as they know they need to do so if they don’t want to sit on the property for an extended time.
Banks are also more willing to look into doing repairs on homes. A large amount of buyers right now are taking out FHA loans which need to meet certain criteria. Some banks are more willing to do repairs that are needed to make the home qualify for the FHA loan than they historically have been.
While banks are changing and are more willing to work with buyers to get deals done and to get the foreclosures off their books, this is also going to depend on the offer they are presented with. If your goal is to get the best possible price on the home and present an low ball offer don’t expect the bank to be as willing to work with you. On the other hand, if you want a good deal, make a reasonable offer and ask the bank to help with certain items they are more willing to do so in the past. Times are changing and we expect even more changes in the future.
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