[quote=AN][quote=CA renter]Under normal circumstances, I’d agree with you about the cash offers, but that’s not the case in today’s market. There is an abundant supply of cash buyers out there, according to newspaper reports, realtors, and based on our own experience. It’s to the point that cash buyers cannot really get much of a discount.[/quote]
That’s hard to believe since I’m seeing the opposite occurring. But I don’t have data to back up what I’m seeing, other than fixer closing MUCH lower than a comparable turn key home minus the cost of upgrades. I see that A LOT. But it’s anecdotal.
[quote=CA renter]In the transactions we were involved with, we didn’t care if it was a cash buyer or not, as long as they had 20% down; the final price was all that mattered…and that includes sales we made when the credit market was absolutely frozen. Now, it’s even easier.[/quote]
Did you turn down a higher offer with less than 20% down? You[/quote]
Like Domo said, I think a lot of the govt-backed buyers can’t get through fast enough. The good deals go VERY quickly to professional flippers with cash. It’s probably not because they are the only ones willing to buy these properties, but that they are the only ones who have the time and ability to get no-nonsense offers in quickly.
It’s also probably because professional flippers don’t worry about lowballing or “offending” sellers. They will offer what they think the property is worth, and the seller can either take it or leave it. That’s why they get the lower priced homes — they ask for it.
———
Yes, we turned down a few higher offers with very low down payments. These offers would have been good just a few days/weeks/months prior, but the mortgage market shut down very abruptly in August of 2007. Because of my obsession with the credit/housing bubble, I knew this before many of the realtors, buyers, and other sellers did, which is why I was able to get out in front of everyone and knew to take only the strongest offers. It worked.
