bank owned properties in Minneapolis

There is a shift in strategy in the bank owned property market in the Minneapolis home market. In the last few years, part of the big housing problem was that banks were unwilling to work with home owners in trouble making their home payments. The banks were also very stubborn in their process to sell the homes that the bank had taken over through foreclosure. This exacerbated the housing inventory even when there were ready, willing and able buyers ready to purchase homes at fair prices. Many times I would bring a very good offer to a bank, and they were unrealistic in what they wanted for sale price. From reading articles and speaking with agents across the country I wasn’t alone in this experience.

See all Minneapolis MN homes for sale at this link.

In the past few months, we are seeing a shift in strategy by banks. Now, rather than pricing properties aggressively, or even at market rates, they are pricing properties below market value in order to induce multiple offers. Just last week my clients wrote an offer on a bank owned property. When we looked at the home, the price was already very aggressive. The next morning however they reduced it another $10,000 which was aproximately a 7% drop. Not insignificant when it was already priced aggressively, and hadn’t been on the market very long. Sure enough, the next day when my client made an offer, we learned that we were in multiple offers.

Again, reading and talking to other agents in the area, others are experiencing the same thing in the Minneapolis home market. What can we learn from this? Move quickly and be prepared! Have your loan approval done ahead of time. Have your homework done so you know the values out there so when you spot a great deal, you can move quickly on these homes.

Have you had a similar experience? If so I would love to hear about your experiences recently.