[quote=SD Realtor]My thoughts are that if your offer is the highest of all the offers out there then it does stand a good chance of being accepted, especially for an REO. I have an all cash buyer who has been outbid on a few homes already for REO properties in Eastlake by non all cash buyers. If the difference is only a few thousand then of course you are in peril. For shorts your position is weaker because when you submit your offer you may be the highest amount but while the processing is getting done another offer can come in at your bid amount and if they have less financing then they will more then likely get the nod. [/quote]
It seems that one may compensate for less downpayment by coming at above the asking price and hoping for the best.
How much higher you see the accepted offer, for REOs and short sales (percentage in regard to listing price)?
[quote=SD Realtor]
I agree with UR in that people are still out there buying with 10% down.
I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it. [/quote]
I don’t think it works quite that way, if you need to put 20% down… E.g. a house of 550K (my price range) – 20% down is 110K. With 10% drop in the price, 20% down is still close to 100K… which is still far from 82K (15%)… I actually need a drop of 27% in price for that 15% of the inital price 550K to become 20% of the actual price – it may or may not happen (I think it will).
Anyway, waiting for many years (>5) to save the 15-20% down will probably get me higher mortgage rates than todays with 10% down, and maybe even higher house prices (eventually, it could happen in the number of years it would take me to save the another 30K down payment – at least I’d be sure we have passed the bottom).
[quote=SD Realtor]I know with kids and a family it is hard to be patient especially if it means another year or two. [/quote]
That’s very true 🙂 But we will be patient at least another year, rather than doing something risky. We are renting in a place with ultra-short commute, in UTC, and if we buy a house (in PQ, CMR), it will definitely mean a significantly longer commute. So with that in mind, we find the patience to wait (we HATE commuting in the rush hours!).
