Do you know that you can potentially save thousands of dollars by learning a few tricks of the trade when negotiating the price of a foreclosed property? With the stiff competition among equally interested buyers, it can be difficult to gain better control on the prices. By knowing the right questions to ask, you can gain a significant leverage when it comes to negotiating the price of a real property.

Ask the Right Questions
Why is the property for sale? This is very important question you need to ask to be able to make an informed evaluation and estimate of the price. To get more information, take time to conduct a background check and glean pertinent information from the following key sources:

Ask the property owner – the best source of information
Ask the lending institution
Ask the neighbors
Check the public records
Consult trusted real estate agents

Consider Fixer-Upper Properties
Many homeowners today can no longer afford to maintain their homes due to some financial difficulties. They may no longer have the capacity to bring their payments up to date on missed mortgages. Most often than not, these owners prefer selling their homes instead of facing foreclosure. These fixer-upper properties can offer wonderful re-sell advantage if you are looking to ‘flip’ the house. This means you buy a property, make the necessary renovations and sell it at a higher price to gain income.

If you are looking into making such an investment, you first need to check the prevailing rates of properties in the neighborhood. In the real estate business, the latest six-month period is the standard basis for this assessment. The rule of the thumb here is to go for a decent home in a good neighborhood rather that a good house in a bad neighborhood.

Negotiating with the Seller
Before you negotiate, do your homework by gathering information from banks, lenders as well as from the seller. It is also advisable to list your questions so you will not miss out anything. Below are some great examples:

How long has the property been up for sale? Ask if this is the first listing.
How many offers have been received for the property? You don’t need to get the exact figures, or expect you will be given the information. But it wouldn’t hurt to ask.
Is the property under any contract from any pending offers? Or was any contract canceled?
Ask about the condition of the house, including age, roof, air-conditioning, plumbing and appliances, etc.
Ask if they can provide you old photos of the house. It may sound silly for some, but it can definitely prove useful in gauging the overall condition of the property over the years.
Is there any major structural or environmental problem that you need to know of?

By knowing the right questions to ask, you can best determine what you are up against, play to your advantage as well as be able to offer the best possible price that is fair for both parties.