This is the new question buyers are asking their Realtors and seller. I want to pay the “foreclosure price” and not a penny more!

 

Typically the price of a home is set at “market” price.  This is the price a home could sell for based on similar properties sold in the area in the prior six months. Realtors do research, provide comparable sales data and push the envelope a little more.

 

A few years ago, I was talking about bidding wars and paying premium pricing.  Now we speak of the “foreclosure price”.

 

This so-called price is the dollar amount of what the seller owes the bank on the mortgage.  Bottom feeders and sharks are going after desperate sellers just trying to get out from under the debt.  Stats now show that 30-45% of all people that bought homes in the last six years owe more than the house is worth. If you have to sell your home, you have to take the best offer possible. If you do not, then you don’t have to because you do not have to move.

 

I instruct clients to ask why are they selling the house and how long has it been on the market?  This gives a good feel for how far you can push.  Now, add the question, do they have to sell and how much do they owe? You can even do your own research on-line to find out when they bought the house and how much did they pay for it.  Take it further and find out how much they owe on their mortgage.  If they have to sell, offer the amount owed. Just please, do not call it the “foreclosure price”.  That can be very insulted.

Dale Robyn Siegel