In most cases you can expect that the initial asking price on a foreclosure to be slightly below its market value. Prior to listing a property, the bank or asset management company will request the listing agent complete a Broker Price Opinion. This opinion becomes the basis for the property’s initial pricing.  An experienced Buyer’s Agent will be able to advise you on how the initial asking price compares with the current market value for the property. Oftentimes the value appears low, however, the lower value is based primarily on the properties poor condition due to lack of upkeep. The good news is that you can expect the initial asking price to drop fairly quickly if no acceptable offers come in. Most foreclosures are reviewed every 30-45 days for a potential price drop. The Bank will continue to drop the asking price on a regular basis until the property sells. The key to getting a great deal is making the right offer at the right time before the next guy swoops in. Our next blog article on foreclosures will focus on the basics of making the right offer.

Team Mountainscape