[quote=flu]Not really, the house is fine. I used up all my money for the year on investment housing. It took 6 hard months of research to find them.
So I hope this settle any of you skeptics out there that still think there aren’t enough strong buyers out there looking for good properties…
BG, you reading?[/quote]
Agree, flu, except in this climate they want to “steal” them. If they can’t, they’ll pass.
The OP “passed” on this smallish blue/white cosmetic-fixer rental-type “SS” listing for $280K in MM (because it was too slow in processing the SS and he bought elsewhere in the interim?). The “seller/lender” immediately reduced the price to $270K when the OP backed out. Another poster stated it may end up going for $240K and it may very well do that.
When a home-debtor is “short-selling,” it’s no skin off their neck to sell “their” property for way below the recent comparable sold comps because it’s “funny money” for which they won’t be liable to pay back. Homedebtors are beginning to list “their” properties “short” en masse now, whether they can afford the payments or not. They can just hide their assets with a third party (or slip them into retirement funds) and then tell their lender they’re “broke” and unemployed (to compel them to “take it in the shorts”).
When these lenders finally get worn down (because they’re too stupid to foreclose in a timely manner) and agree to sell these strategic short-sellers’ properties deeply short …. walaaa! One more (undervalued) sold comp is good for six months in the immediate area and …. drumroll …. that price is now the “new normal.”
REO’s don’t generally sell as deeply discounted as SS’s do as the Big Banks are spending an avg of $5,700 on each SFR to “fix them up” after taking title and before marketing them at retail price (or close to it). I agree with the other posters who stated that SS’s (most of them probably “strategic” by now) are dragging down the values of surrounding property and causing mass “artificial undervaluation.”
As I’ve posted before, this is all due to “lender malaise.”
Potential-buyer Piggs out there seem to be whining about lack of available inventory and the above-described problem is the sole reason.
