subject: Miami Beach Foreclosures: Negotiating The Purchase To Get Better Bargain [print this page] Negotiation is a crucial stage in any types of real estate purchase, especially foreclosures. When you are trying to buy Miami Beach foreclosures that have been repossessed by the bank and sold openly to prospective buyers, try to remember to negotiate well in order to get the bargain you're looking for. Here are some tips to help you and things to consider.
How the negotiation will begin
After contacting the bank that holds the Miami Beach foreclosure you're most interested in buying, ask your agent for a walkthrough of the property to confirm and asses the present condition. Dont settle for pictures but instead, visit them in person. If the property passes your criteria, contact the bank and inform your interest to the right department.
However, this will not be as quick as in other states because Florida laws give homeowners a specific length of time to reacquire their property if they manage to settle the outstanding debt. The redemption period can last from a few weeks to several months depending on the bank, in general. You must not apply for a purchase agreement until the grace period ends.
Your goal vs. the banks goal
As a Miami Beach foreclosure buyer, your primary goal must be to purchase the property below market value and get the best bargain possible. Of course, you have to include the estimated repair cost to the price you intend to go for. It is important to show the bank that you are serious about buying and ready to complete the purchase.
This will be easy if you know that the general goal of the bank is to at least break even on all the expenses that have been directed towards the property. The foreclosure process oftentimes cost them more money. The cost doesnt also stop there since maintaining the property after the foreclosure also carries a hefty price tag.
Things to look out for
If you're serious about getting a bargain, there are great ways to do so. First, consider making an as-is offer. By accepting to purchase the property in its current state, youre surely going to reduce the purchase price. Another is to back your offer with sufficient papers, most importantly with a pre-approval letter.
Also, keep your eyes peeled for banks that have a surfeit of Miami Beach foreclosures in their inventory. Foreclosures are considered non-performing assets and therefore have no use while theyre on standby. They cost more in maintenance, and as such, banks are almost always willing to accept any reasonable or low offers just get the property off of their shoulders.
