Buying a Tucson Foreclosure

While buying a bank owned property is a bit easier than buying a short sale, it still has its challenges for the agent and the buyer.

I recently represented a buyer in making an offer on a bank owned property. It reminded me of better times a couple of years ago when any listing brought in multiple offers, typically on the first day.
My first time buyer wanted to find "a deal". When a low priced listing came up in the area he wanted, we took a look at it on the first day of the listing. The comps showed us that even at full listing price, the home was a screaming deal. We submitted our offer immediately at full price with minimal conditions.
When I checked in with the listing agent the next day, she let me know that she'd received 9 other offers. She told me that the asset manager would respond with a request for a "best and final offer" the following day.

To make a long story short, it took us 2 weeks and 4 more offers to get an acceptance. The bank required the buyer to sign the dreaded standardized addendum the contradicted many of the buyer protections in our standard Arizona Purchase Contract. The Bank would do no repairs. The Bank would offer no disclosures. The Bank would warranty nothing. Scary stuff, but with 8 other ready and willing buyers competing with us, the Buyer decided that with a thorough inspection of the home, he was willing to forfeit some of the protections in the standard agreement.

You can imagine the comments he heard from his friends. "What do you mean you paid more than listing price in this market?" and "Tell the Bank to stuff it". But the good news is that the Buyer had the logic and patience needed to succeed in getting that good deal.

He's closing on the home right before Thanksgiving and despite all the hoops he's had to jump through, he's grateful that he had the fortitude to hang in there.