Well, here are two houses next to each other in La Mesa. Almost identical, mirror image floor plans.
7880 Michelle
Asking: $399,000 (looks like flip)
MLS #: 100036138
3bd/2ba 1248 sqft
9100 sqft lot
Pool
Master Bedroom Expansion
7890 Michelle
Asking: $300,000 (short sale, asking for cash)
MLS #: 100024115
3bd/2ba 1248 sqft
8600 sqft lot
No Pool
There may be 2 different “market prices” depending on whether you are paying cash or putting it on credit. If the 399k sells for asking, undoubtedly some flipper will score the 300k, fix it up for the FHA buyer and resell.
20% down conventional doesn’t seem to be any advantage in this market. The problem is the “conventional” financing must be Fannie Mae conforming, which is a pretty similar standard to other government financing. So, properties pretty much can go FHA/VA or they go all cash. Your 20% down crowd will be outbid in most cases.
