"As Is"

Bank-owned properties don't like to advertise that they own a property. They feel that if the public knows the property is bank-owned that knowledge will stigmatize the property. So how does a potential buyer know a property is bank-owned? "As is" is the give-away. If a property is advertised as "as is" you can be pretty sure it is owned by a bank. Other indicators are pre-approval letter, no price-reduction no matter what the inspection says, requirements to sign a long offer form that basically gives the bank all the rights and you, the potential buyer, no rights. And all of the above is required with the offer.

So why would you make an offer on such a property? Because the price is so far below the usual market price for the area you can't resist! Why won't you be able to resist? Because if you buy low and add sweat equity you'll have instant equity. Who doesn't want value?

How do I know the price is right? Call me to do a market analysis. I'll check MLS and see what surrounding properties are selling for, I'll visit the property (if allowed by the seller) and see what features the property has, what the property condition is. Then I'll check MLS for comparable properties (which I will also visit, if allowed and if I don't already know them). I'll use all that information to brief you on what the property is worth according to the market right now. If the price is right, you'll know. If it isn't, you'll know to ask me to show you other properties that might be a better deal.

But in the real world, a comparative market analysis is useless when applied to making an offer on a property, in most cases. Why is this? Because the seller determines the value of their home. If the home is bank-owned, then the bank has had a professional (like me) determine the home's value. The home is then listed for sale at that price. The bank will rarely accept any other price except full price. Only after a certain amount of time will the bank agree to allow the listing broker to lower the price of that home.