7 Tips on Placing an Offer on Bank-Owned NJ Real Estate

How and when to make your offer when purchasing bank-owned NJ real estate

 

Purchasing a home can be one of the biggest financial decisions you will make in your lifetime. Because of this, timing is crucial regarding when to place an offer to purchase on NJ real estate to ensure you are getting the best deal possible. For example, it is always helpful to find out why a seller is selling when you are seeking to purchase a home. Although it might be difficult to obtain this information because the listing agent may refuse to tell, you can gather information on your own.

Below you will find several tips to help you make your offer:

Be Sure Utilities Will Be On For Inspections

Do not assume the bank is going to be kind enough to ensure that all of the utilities are on for your home inspection. If you do not ask for it, you might not get it, so make sure that you do. It is not very easy to check for leaky pipes on a home that has been winterized!

Do Not Reduce Your Offering Price Based on Repairs

Yes, there are most likely going to be issues of some sort, as it is uncommon to see a foreclosed home in perfect shape. NJ real estate agents will advise you to keep your offer at what it was initially until further notice. That being said, do not base your offer on the amount you think repairs are going to run. The bank has probably been made aware of suggested repairs by their agent, long before you first saw the house, and they have adjusted the listing price to reflect that.

Get a Mold Test

Although a home may appear to be in perfect condition, NJ real estate agents will tell you it is extremely important for you as the client to not skip the mold test. The bank is exempt from a disclosure/disclaimer statement, and keep in mind they have never seen the property personally. The property may also have been vacant for an extended period of time, and may have also been without heat, electricity, and water.

Make Sure You Include a Walk-Away Clause

Any foreclosure you buy is going to be sold in “as-is” condition. That means that the bank is held harmless from making any repairs, so make sure you have a “walk-away” or “right to terminate” clause attached to the home inspection.

You Cannot Revise the Bank’s Paperwork

If you have read through a bank’s required addendums attached to every property and felt a little nervous, you are not alone. The bad news is that in this situation is that you do not get the opportunity to rewrite their addendums.

Be Prepared To Be Pre-Approved With the Bank That Owns the Property

Although this may seem unfair to some, many banks require you to pre-qualify with one of their lenders before they are willing to consider your offer. In addition, keep in mind that the bank cannot force you to use their financing; they can institute policies restricting what they will offer financially as incentive to buyers.

Do Not Choose a Rookie NJ Real Estate Agent to Represent You

You should always try to work with an NJ real estate professional who has been in the business for a few years, and this is even more important when dealing with a home in foreclosure. Find an agent with a great reputation, such as a Team Chris Walsh Realtor, as they have probably dealt with foreclosures many times over and they understand the risks involved and how to keep their clients well protected.

 

The NJ real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information about NJ real estate, call us today or click here to be connected with one of our top real estate specialists.