What he said.
Okay, a disclaimer, this is my broker, the owner of the brokerage I work for (Jon Gosche Real Estate), and maybe most importantly, my dad. He knows what he's talking about here, so Boise buyers pay attention! Some buyers still want to bid under because they have been told that it is a buyers market and they shouldn't pay full price! Well, after losing out on a few bid wars and missing out on your favorite home, you will find out that your agent wasn't just feeding you a line. We know the market. Our job is to represent you and to hopefully get you the best deal possible, but sometimes the best deal possible is actually getting you the home you want, even if you have to pay over asking price for it. 20 offers! Wow.
P.S. That son-in-law that my dad is talking about in the last paragraph is my husband, John. He is a ROCK STAR short sale agent in the Boise area.
How to buy Boise Bank owned home: It has been increasingly frustrating for buyers and buyers agents to buy a bank owned home in Boise. Especially in the $100,000 range. Yesterday I received an acceptance by a bank for one of my buyers. The home was in west Boise. It was listed for $82,650. We looked at it the forth day on the market. We waited to get in because others were looking. When we left there were others going in.
I didn't think this was that great of a home for a home owner. It was about 1,000 sq. ft. with a very small yard. Good rental home in a good part of town, but small and in need of new carpet, paint and some yard work. After looking at several more homes my buyer wanted to revisit this one. AGAIN we had to wait to get in and people were waiting for us! My buyer like this house. I called the listing agent and there were already 9 offers in on this. This was on the fourth day on the market.
We went to my office and looked at comparable sold and active. We talked to my buyer's property manager to get a good idea of what it would rent for, and my buyer has other rentals. $95,000 is what we figured would give him a worthwhile rate of return (cap rate). Before the bank quit taking offers they had 20 offers. That's right. 20!
My buyer was putting down 25%. We provided a loan commitment letter, proof of funds and a sizable earnest money deposit. Five days later I received notice that our offer was accepted. Wow! Out of 20 offers. Our offer was not the highest offer. But the bank considered it the safest according to the listing agent. There were at least two offers for higher sales price. They were buyers with FHA loans, little money down, less earnest money, and they wanted some closing costs paid for. Our offer was clean with the buyer paying closing costs, a reasonable closing date, and substantial earnest money. I also am quite sure that the listing agents have some input to the banks on some of these bank owned homes. He knows me and knows my buyers close.
When buying a Boise bank owned home buyers need to know what the game is now. The banks have learned that the way to get the most money is to under-price homes to compel buyers to offer. Secondly, the will not consider offers for the first several days after a home is listed. It used to be that they would price high and then gradually drop the price until the magic number was hit. No more! Most banks are now underpricing Boise bank owned homes. Lots of buyers are specifically looking for a Boise bank owned home. Some are stuck on bank owned homes and don't even want to look at short sales or homes that are not bank owned because they think they will get a better deal. If you are looking for a good deal Don't limit yourself to a Boise bank owned home. Not everyone is upside down. Some people just have to move and have become realistic, knowing that their sale price has to be in the bank owned home price range to sell.
Short sales have become easier and faster. More agents understand how to do them. In the past buyers have been frustrated with the short sale process, but if you have some time don't rule out a short sale. And definitely look at homes that are not bank owned. Although you need to be patient with a short sale, they often will sell for less than a bank owned home.
Use www.BoiseMeridianRealEstate.com to search and sort out bank owned homes, short sales, and regular sales. I think you will find it the best real estate website in the Boise area. Call me, Jon Gosche at 208-870-2115. I have Realtors who have done many short sales and have been buyers agents for many bank owned homes. Real Estate has become complicated. Having the right agent for what you are doing is more important than ever. It takes more than showing houses and writing an offer. To get the best deal you need an agent who can show you comparable sold property and help you strategically negotiate.
My son in law and I have closed 110 short sales on the seller side, and several on the buyer side, or both sides. I have agents who specialize in development property, buyers agents and listing agents. Call me and I will hook you up with the right one for you. If you want to buy a Boise bank owned home you need an experienced agent. Or you will likely really be frustrated.
Jon Gosche Broker, GRI e-Pro
Jon Gosche Real Estate
Kasey & John Boles
Jon Gosche Real Estate
3931 S. Sumter Way, Boise Idaho 83709
208.830.6185 / email@example.com
Associate Broker, GRI, CRS, REALTOR®, ABR, ePRO, SRS, SFR
This is not intended as solicitation if you are in contract with another real estate agent.
Equal Housing Opportunity.