The biggest challenge buyers in Utah County are experiencing right now is being the winning bidder on a bank foreclosure.

Many buyers fell the market is slow but don't realize the bank foreclosure market is red hot.  This means a buyer must be at making a decision.  I have helped several buyers in the past two months sleep on an offer for a day or two and lose the home.  A really good deal doesn't last long.  Most buyers are upset and regret their lag time.  However, it gets them ready when the next good deal arrives and they are ready to make the move. 

As a listing agent for a few local banks in Utah County, Team Teasdale Realty knows what the banks are looking for. We speak to the asset managers and presidents directly.  If you follow these tips your chances will increase as not every buyer knows what the bank considers when looking at multiple offers, which many foreclosures receive.

The first thing buyers must understand is there is a lot of competition for these homes.  Typically bank foreclosures go fast, and often for over asking price.  Everybody seems to want them.  So structuring your offer and submitting it correctly will increase your chances.  I just bought one myself in Springville, Utah in January.  As soon as I made my own offer with a few hours another offer arrived.  I quickly restructured my offer and beat the other offer.  I am now the proud owner of fixer-upper.  I help many buyers buyer bank foreclosures in Utah County.  I seem to have sold quick a few in the Springville , Spanish Fork and Mapleton , Utah area lately.  However, I work through out Utah County.  Here is a link to search for bank foreclosures only in Utah County.  The database is live and accurate. 

Here are some really awesome tips on how to buy a bank foreclosure in Utah County:

1)  Clearly state all buyers' names on the contract.  This is how you will take title.  It is very difficult to make changes later.  The banks don't like it and will even gladly kill your sale.

2)  If paying with cash, provide proof of funds like a bank statement.  This needs to be a recent bank statement with names on the statement that match the names on the contract.

3)  If financing, provide pre-qualification letter from an approved lender in Utah County.  If you need an excellent lender let me know.

4)  Indicate whether the buyer is a homeowner, investor or other.

5)  Clearly state all terms like settlement, financing and due diligence.

6)  If you ask the bank to pay any closing cost make it very clear.

7)  If financing FHA, be sure to have all fees included in offer.

8)  Don't assume the bank will always counter the Highest and Best.  Banks will accepted one offer over another without a counter offer.  I lost a sale in December because the bank didn't like our settlement date being 60 days out due to tax reasons.  They accepted another offer for $18k less than ours for a quicker close.  I still can't believe it!  Banks are often completely INSANE.

9)  Do your market research upfront.  Bank foreclosures in Utah County tend to go quickly and for over asking price with multiple offers.  Yes, with multiple offers!  If you are not competing with anyone you may have time for a lower offer.

10)  Do not submit an offer without all the required documentation or the bank will never see your offer.

11)  The listing agents that often work for the banks tend to be a little lazy and will not baby sit your offer.  If it isn't complete it won't be submitted.

12)  Make sure you have hired an excellent Real Estate Broker that is experienced in buying bank foreclosures.  If you would like information on hiring an expert broker that has been selling bank foreclosures in Utah County for 16 years contact Paul Teasdale.

13)  Verify the listing agent has received your offer.  Don't just fax it and assume you are done.  Check and double check.  You and your broker need to be on top of it.

14)  Make sure you understand the meaning of AS-IS because the bank will sell without warranties.

15)  Try to negotiate a few repairs during your due diligence period.  It doesn't always work but it is worth the fight. 

Tips on Buying Bank Foreclosures in Utah County

Keep in mind, listing agents must have all the required information, so if they ask for something upfront, they mean it.  Listing agents don’t have time to track your agent down for this info.  We attach a document to each MLS listing specifying what is required with the offer.  Make sure your agent completes every single field.  We submit offers into an online system, and if information is missing, the offer cannot be submitted.

The bank never sees your offer until one is accepted.  The listing agent must enter information into and online submission, and it must conform to what the bank asks for, and all fields must be filled out.  If a foreclosure has 20 offers, the listing agent doesn’t have time to call 15 agents and beg for information they required upfront.  Keep in mind, it takes awhile to upload 20 offers, and the listing agent may be dealing with 20 properties.

Listing bank foreclosures in Utah County is very time intensive, and the listing agent coordinates everything from repairs to working out HOA fees, title issues, code violations, etc.  Providing the required information is the first step.

Secondly, consider that you’re probably competing against other buyers, and that many will be above asking price.  So how do you compete?  Consider a higher escrow money deposit, shorter closing time, and definitely a shorter inspection period.  Bank asset managers are also gauging the strength of each buyer, so you want to put your best foot forward in hopes of getting the property.

Banks are on the lookout for buyers tying up properties then using contingencies to escape later.  Banks want solid deals, so you want to dress up your offer to make you look like the best buyer in the batch.  The price will be close to asking price or above because it’s a deal anyway, so you have to compete in other ways.  Year after year banks are getting more and more difficult to work with.  They are not very friendly.  They are now even cutting Realtors commission on a regular basis.  I have had a few closings where they demanded changing the commissions paid at the closing table to save a few buck.  Integrity?

In many cases banks will counter multiple offers with highest and best.  Buyers are shocked when the bank doesn’t and just accepts one offer, so it always pays to pony up early on and go for it.  If you do get a highest and best form, assume the other buyer wants it as bad as you do, and act accordingly, because if you don’t, chances are you won’t end up with the home.

Be careful that your offer is written well and clearly states all fees and costs.  It is difficult to impossible to make changes later, and it could cost you the home.  Any change to contract later on opens up possibility the home goes back out for rebid and you could lose it, so it pays to write offer correctly the first time.  Same applies with names; make sure everyone who wishes to take title is on contract from beginning. You may not be able to add names until after closing, which could require new title insurance and additional fees.

If you’re purchasing as an LLC, make sure you provide documents upfront that you’re authorized to sign for the LLC.  The bank will ask.

Each bank has their own rules, so be sure to follow directions well.  Make sure you’re working with an agent who understands contract language. Many times we see financing contracts that don’t match up or specify some costs buyer is not allowed to pay under the buyer’s financing program, and the offer cannot be presented to bank until language is cleaned up which could cost the buyer the sale because of delays.  Be sure to work with an agent who has experience writing clear and concise contracts and understands financing in and out.

Consider using Team Teasdale Realty as your buyer's agent in handling your purchase.  Team Teasdale is very experienced in helping find, negotiate, compete and purchase a sweet deal on a bank foreclosure in Utah County.

Following these tips will increase your chances, and ignoring them will most assuredly have you scratching your head wondering why the bank selected another offer.  Good luck and happy house hunting.

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Welcome to my Utah County Real Estate blog!  We are located  in Mapleton, Utah.  Our team combines proven traditional real estate practices and represents the leading edge in the future of real estate marketing by merging internet technologies, service, communication, information and analysis with those traditional practices to provide our clients with an exceptional real estate experience and superior marketing.

Paul Teasdale, Principal Broker
ABR, CRS, e-PRO, QSC, Finance  BYU
16 Years Experience, 850+ Homes Sold
Team Teasdale Realty, Utah County Real Estate
Phone: 801-491-7653