While bank-owned homes are plentiful in Portland, they aren’t always easy for a buyer to get. Foreclosures sell at bargain prices — sometimes at 35 percent discounts when compared to nonforeclosures. These ultra-low prices are attracting investors and all-cash offers, which makes it difficult for other buyers’ bids to win out.

Here’s how Portland buyers can make their offers stand out from the competition:

Get the first look: Fannie Mae and Freddie Mac’s First Look program offers first-time home buyers and others who need financing and are looking for a primary residence the first opportunity to see bank-owned homes before investors. Buyers have a 15-day window to submit offers before investors have the opportunity to start bidding.

Submit a competitive offer: Homes priced at heavy discounts in Portland can be in high demand and attract multiple bids. Lowball offers won’t likely get far. Some housing experts suggest starting with your best offer. “My advice is to offer the most you feel you would ever pay for the property,” said one recent buyer of a foreclosure.

Make a large deposit: If a buyer wants to get the banks attention, they could offer a larger than typical earnest money deposit. But if the buyer has to back out of the deal for some reason, he or she may be at risk of losing the deposit.

Even if you really want the property, don’t cave in to unreasonable demands, like waiving a home inspection. Otherwise, it may be a decision you quickly regret if the home is later found to have many problems.

by Betsy Ballantyne (source, Realtor.com)
betsy@betsyballantyne.com