Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.
It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.
From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.
You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.
At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.
Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.
