Why do real estate agents announce that a listing is a foreclosure property on their websites and on the Kansas City mls? Stating that it is a foreclosure would seem to invite and encourage low-ball offers. Is that the purpose?

Question: Why do real estate agents announce that a listing is a foreclosure property on their websites and on the Kansas City mls? Stating that it is a foreclosure would seem to invite and encourage low-ball offers. Is that the purpose?
Dan S. from Overland Park, Kansas


Answer: The purpose is not to invite low-ball offers. The primary reasons are to disclose a major material fact with the property and to alert buyers that the property is a foreclosure property. Typically banks will not accept low-ball offers because they have had a recent appraisal completed on the property. Trying to buy a property during the foreclosure process can be frustrating. The process can take longer than buying a normal property. In addition, buying a foreclosure property can be more costly. Some buyers simply don’t have the time, money, or patience to try to buy a property in foreclosure.  Real estate agents don;t want to work on a sale of a foreclosure property and have the buyer walk away a few days before closing because it is taking to long. Stating that the property is a foreclosure or short sale gives buyers fair notice as to what they can expect so that they can decide if they even want to consider an offer on the property. 


Lately, the local Heartland MLS in Kansas City is requiring ownership of the property to be noted. When it is a bank, most agents expect the property to be a foreclosure.


If you're thinking about a foreclosure property, go for it. Not all foreclosure properties are good deals. The right foreclosure property can be a good deal and save a home buyer money.




Hope this helps, Dan.


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