The phone rings. It's a buyer. He wants to put in an offer on a foreclosure. He bids higher than the asking price. I tell him that his bid is still not high enough. I know this, not only because I just went through the same scenario with a another buyer, but because I have an email on my blackberry from the listing agent telling me she has offers way higher than the asking price. She asks me, "Are you sure this is his highest and best offer?" I confirm with the buyer and guess what? His offer is not accepted. A cash offer, instead, for "Way Higher" was selected by the seller.Simply put. the market is filled with cash investors, snatching up bargains before a first time buyer can get their hands on them. I have, in fact, reports that show many houses selling for more than the list price. This is a great trend for the market, but bad news for first time home buyers, even with twenty percent down.
Pointers:
If you can come up with an additional 10 percent down and have at least a total of 30% down, then the banks may seriously consider your offer instead of an all cash offer. I know that's easier said than done, but if you actually have some extra cash, it may worth be using it to beat out the big boys.
If you have the time to wait it out, then take a look at short sales. It may take a while, but buyers are getting pretty good deals on short sales these days. If you don't have a lot of time to wait, then try finding an approved short sale, or one that has had a buyer recently walk away. This can be a great entry point for a buyer.
Persoanlly, if I can't find the buyer a foreclosure, I ike trying to find non short sales, or what I like to call a normal deal. These are not as easy to come by as one might think. There are not many sellers that actually have equity in their houses. I'm in the middle of a deal where the seller is bringing over 75k to the table. That's not easily done for a whole heck of a lot of people. But if you can find this type of transaction, it usually leads to a seller who is happy to sell in this market, and a buyer who is still probably getting a good deal.
Conclusion:
Recently the market for me has been on fire. Prices are affordable and rates can be had for under 5%, (with points). To me this is encouraging, and with the winter season around the corner, I predict things are going to get even hotter.
Thanks for reading and have a great day!
Aaron Glassman, Broker/Owner
A-1 REALTY GROUP, INC.
954-326-2663 . cell
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