Can I buy a foreclosed property at a deep discount?
Most people believe that buying a property that is bank owned implies that you can buy it at a deep discount. Unfortunately, this is not necessarily the case. Bank owned property is listed at a price believed to be fair based on current market conditions along with the physical condition of the specific property. Statistically, in Southern New Hampshire, bank owned single family properties sell for 97% of the list price. If a bank owned home is initially listed at a price too high to attract buyers, banks will periodically lower the price. Statistically, bank owned single family properties in Southern New Hampshire sell for 89% of the initially listed price. These statistics are current and taken directly from MLS.

• Seller will reject a low-ball offer and may not counter the offer.
• Seller will not accept an offer without seller addendums or with any changes to seller addendums.
• Offers cannot be submitted without a pre-approval letter or in a cash situation a copy of the Buyer’s proof of funds, i.e., a bank savings statement.
• Buyer may be required to pay all of NH stamp taxes equal to 1.5 percent of the sales price and should count on that in their offer.
• Home inspection might not be allowed as a contingency on the purchase and sales agreement and buyer should make an offer with assumptions that some things need repairing or replacement based on the age of the home, appearance of the home, and their own evaluation.
• Buyer is responsible for checking the condition of the property, outstanding fees, taxes, utilities, and any other categories pertaining to the property as the seller and the seller’s agent makes no representations.
• Buyer may be required to pay a per diem between $100 and $250 for any time lost beyond the closing date on the purchase and sales agreement.
• Seller may not respond to an offer for 1-3 business days; buyer should not expect signed contracts for 3-7 business days from the seller.
• Buyer should be aware that a purchase and sales agreement is not enforceable until signed by all parties.
• Seller will not accept a purchase and sales agreement with a home sale contingency.
• In a multiple offer situation, seller will ask for buyer’s highest and best offer. Seller, at seller’s option, may choose one or none of the multiple offers.
• It is recommended that the Buyers change locks on the purchased property as the keys are commonly used in the foreclosure industry.
• Seller will not put utilities on prior to closing. Buyer might need to put utilities in Buyer’s name for inspections including fuel.
• Buyer cannot move personal property or take possession of the property prior to closing under any circumstances including closing delays that might occur due to Seller.