You must have goals as in every business!
Setting up your negotiation strategy in making your offer for buying foreclosure house
Here are some observations regarding typical foreclosure properties”
- Owner’s property is in a worse condition than they know.
- Fixing it up will be costly.
- Cost of the material and labor are higher than before.
- It takes too much time to do it.
- They can reduce the price, make a quick sale, and let somebody else take care of it.
Keep the center of negotiations on the property, not on the person. Ask him or her not to take this personally when you negotiate.
Make your purchase of foreclosure home contingent upon full inspection
Request a contingency clause, making your purchase subject to an additional inspection before the closing. This gives you an upper hand to request additional deductions in price or allowances at settlement. In worst case, you may decide not to buy the property at all!
How to design your home inspection contingency of foreclosed property?
You should also ask for clean property at the time of settlement. If you find dirt, debris, or any other junk inside or outside the house during a walk-through inspection before the settlement, then, you are entitled to ask for compensation.
Remember: every contingency you can introduce before the settlement strengthens your position.
Contingencies may take several forms with the home inspection contingency being the most common, followed by financing contingency and others.
Additional contingencies to expand your profit margin!
Other foreclosure inspection contingencies are:
- Approval of your partners, relatives, company, or an agency.
- Inspection by your own contractor, handyman, or other professional (electrician or plumber).
- Any other contingency that you may think of.
Which types of foreclosure properties are you interested in:
- Bank foreclosures
- Government foreclosure homes
- Government foreclosure auctions
- Pre-foreclosure deals