subject: Ensuring the Success of Buying Citibank Foreclosures for Sale [print this page] Ensuring the Success of Buying Citibank Foreclosures for Sale
As with any other bank foreclosures, Citibank foreclosures for sale are being aggressively pushed to the market and at very good rates and terms. Buyers especially property investors can make a killing from buying up these homes so long as they go about it properly.
Elements of a Good Offer
The first thing to do is create the impression that you are intent on your purchase. Citibank foreclosures for sale may be cheap but buyers still need to provide proof that they are able to take out a loan to pay for the distressed property they will purchase. The bank will only consider an offer if it comes with a loan pre-approval document from a mortgage provider.
When making an offer one should consider the real market value of the home as well as the price of similar homes in the same area. One should also take into account the estimated cost of repairs while making allowances for all other incidental expenses. Banks will peg their asking price at a value that is slightly higher than what they actually expect to give them a leeway during discount requests and negotiations.
A Good Home Inspection
Buyers can stipulate a clause in the purchase agreement to the effect that they can pull out based on the results of a formal home inspection. All foreclosed properties are sold as is and only a licensed home inspector can give an accurate assessment on the cost of repairs needed to restore the home to a habitable state. The home inspection is an expense that will be borne by the buyer. Citibank may also be open to a clause stipulating that it will cover some of the minor repairs or reduce the contract price to reflect a discount on these repairs.
Acquiring Citibank foreclosures for sale is definitely a good investment decision as long as buyers know how to negotiate for a good price that will leave enough savings for repairing the property.
