[quote=AK]OK, so it’s no secret that banks/servicers/listing agents/etc. almost invariably go with low all-cash offers on REOs and, in some cases, short sales. Since REOs and short sales constitute the overwhelming majority of transactions, banks are, in effect, driving comps lower and lower.
I keep hearing about overwhelming demand and wild bidding wars, but when I look at the closings I see many houses going at or below asking. In some cases less than what I’d offered.
Now that banks and listing agents have helped set these low comps, they’re complaining that the new Fannie/Freddie appraisal standards are hurting business. Maybe this explains the increasing number of REO listings that will consider VA offers … since VA, whatever its real or imagined problems, isn’t using the new Freddie/Fannie appraisal form.
Sorry guys, but if you’d been selling to “real people” at real prices, you wouldn’t have put yourselves in a downward spiral right now :)[/quote]
This is what I have been saying and seeing for awhile now, I am glad more people are stepping up and talking about it, the system as it is (be it caused by credit crunch or no) is rigged in favor of the all cash low balling investor (or what ever).
This would be over much faster if people with standard loans were allowed to actually win. We would be back to a normal market in months (normal means 70% organic transactions to me).
