Buying Strategy

[propertysearchaddiction]

A little more info for you Piggs. We will be looking San Elijo Hills. All the homes are new and pretty much the same. 1800 sq ft-3500 sq ft homes are selling between $450,000-$600,000.
Last years avg was 3000 sq ft for $550,000.
We will be looking at around 2500 sq ft-3000 sq ft.

I have met several people who have moved here that bought bank owned with FHA and got 3% in closing costs in the last 6 months. They spent many months looking and making offers but they got one.

We aren’t debating whether to wait to save 20% or whether we should sell stock for the down payment. We would rather have the money in our accounts rather than the house. We have no debt and pay cash for cars. We are a one income family with kids so it is very important to us to have cash and stocks available and no car or credit debt.

My question is more about strategy. Focus on those that are missing appliances, no landscaping, etc. Focus on deals during the holidays?

[Oxford]

Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.

It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.

From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.

You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.

At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.

Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.

Sorry David LOL!!

Good luck and good hunting.

Ox
…wiser and harder

[Oxford]

Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.

It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.

From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.

You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.

At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.

Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.

Sorry David LOL!!

Good luck and good hunting.

Ox
…wiser and harder

[Oxford]

Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.

It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.

From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.

You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.

At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.

Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.

Sorry David LOL!!

Good luck and good hunting.

Ox
…wiser and harder

[Oxford]

Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.

It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.

From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.

You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.

At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.

Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.

Sorry David LOL!!

Good luck and good hunting.

Ox
…wiser and harder

[Oxford]

Most homes out there are REOs. I think like 80%. And the sub $400ks have multiple offers in days if they are not crack houses. OK, even crack houses go fast.

It is a war out there since the inventory is so low and investors and renters are in full hunt mode thinking prices have bottomed and rates are historically low — both true in some areas and price ranges. Often, asking prices are ridiculously low to start the bidding panic. Don’t think for a minute that offering full price will seal the deal. Look at PPSF in the area comps and come in around there regardless of the opening price. That may mean 20/30/40/50K over asking price. Welcome to so cal home buying.

From your post I think you are in for a long and frustrating experience unless you change your offer tactics and understand the game being played now.

You can sweeten your offer by removing some contingencies and shorter COE but banks are not really interested in that. And that 3% for closing? The asset managers will be doing hook shots with your offer into the trash can from 50 feet. Swoosh!!! And asking the REO bank to pay your closing costs will have him spewing his Diet Coke all over his LCD monitor.

At 10% down you have no chance on a hot property. There are tons folks with cash and lots of money down that will crush your offer. And cash is NOT king. Banks make money selling loans so HIGHEST and BEST offers means alot of different things to banks. I just beat out all cash with a great offer and 50% down.

Get a great broker and a Sandicor feed with your parameters. I used sdrealtor for selling my home in LCV and for purchasing my new one. Great guy and smart as hell and wrote the book on short sells. Tours are a thrilling experience…watching a guy navigate winding roads without a GPS while Blackberry texting and taking/making calls. It is a terrifying art form worth experiencing.

Sorry David LOL!!

Good luck and good hunting.

Ox
…wiser and harder

[Oxford]

From what I can see there are only about 5 homes in SEH at $550 or under…well, that are not contingent. Some have plus $400 mello roos and others have high DOMs (must be a reason).

I feel the “cherries” got snagging in the spring buying season. It was nuts up there. Kinda like left overs now but some stuff is trickling in. Maybe more will show up as we move into fall. My guess is banks might wait until next spring to toss more bones to the hounds.

Find an agent who REALLY knows that market. Talk to a few and see if the stories match up. You want an agent who can be a knowledgeable consultant to help you develop your overall strategy.

It’s alot of work but can pay off if you go in with your eyes open, hardened nerves, extreme patience and intuition, tons of information (knowledge), a high tolerance for disappointment, and throw in some fox-like cunning.

I wish you the best of luck.

OX
…REO Support Group Leader

[Oxford]

From what I can see there are only about 5 homes in SEH at $550 or under…well, that are not contingent. Some have plus $400 mello roos and others have high DOMs (must be a reason).

I feel the “cherries” got snagging in the spring buying season. It was nuts up there. Kinda like left overs now but some stuff is trickling in. Maybe more will show up as we move into fall. My guess is banks might wait until next spring to toss more bones to the hounds.

Find an agent who REALLY knows that market. Talk to a few and see if the stories match up. You want an agent who can be a knowledgeable consultant to help you develop your overall strategy.

It’s alot of work but can pay off if you go in with your eyes open, hardened nerves, extreme patience and intuition, tons of information (knowledge), a high tolerance for disappointment, and throw in some fox-like cunning.

I wish you the best of luck.

OX
…REO Support Group Leader

[Oxford]

From what I can see there are only about 5 homes in SEH at $550 or under…well, that are not contingent. Some have plus $400 mello roos and others have high DOMs (must be a reason).

I feel the “cherries” got snagging in the spring buying season. It was nuts up there. Kinda like left overs now but some stuff is trickling in. Maybe more will show up as we move into fall. My guess is banks might wait until next spring to toss more bones to the hounds.

Find an agent who REALLY knows that market. Talk to a few and see if the stories match up. You want an agent who can be a knowledgeable consultant to help you develop your overall strategy.

It’s alot of work but can pay off if you go in with your eyes open, hardened nerves, extreme patience and intuition, tons of information (knowledge), a high tolerance for disappointment, and throw in some fox-like cunning.

I wish you the best of luck.

OX
…REO Support Group Leader

[Oxford]

From what I can see there are only about 5 homes in SEH at $550 or under…well, that are not contingent. Some have plus $400 mello roos and others have high DOMs (must be a reason).

I feel the “cherries” got snagging in the spring buying season. It was nuts up there. Kinda like left overs now but some stuff is trickling in. Maybe more will show up as we move into fall. My guess is banks might wait until next spring to toss more bones to the hounds.

Find an agent who REALLY knows that market. Talk to a few and see if the stories match up. You want an agent who can be a knowledgeable consultant to help you develop your overall strategy.

It’s alot of work but can pay off if you go in with your eyes open, hardened nerves, extreme patience and intuition, tons of information (knowledge), a high tolerance for disappointment, and throw in some fox-like cunning.

I wish you the best of luck.

OX
…REO Support Group Leader

[Oxford]

From what I can see there are only about 5 homes in SEH at $550 or under…well, that are not contingent. Some have plus $400 mello roos and others have high DOMs (must be a reason).

I feel the “cherries” got snagging in the spring buying season. It was nuts up there. Kinda like left overs now but some stuff is trickling in. Maybe more will show up as we move into fall. My guess is banks might wait until next spring to toss more bones to the hounds.

Find an agent who REALLY knows that market. Talk to a few and see if the stories match up. You want an agent who can be a knowledgeable consultant to help you develop your overall strategy.

It’s alot of work but can pay off if you go in with your eyes open, hardened nerves, extreme patience and intuition, tons of information (knowledge), a high tolerance for disappointment, and throw in some fox-like cunning.

I wish you the best of luck.

OX
…REO Support Group Leader

[jpinpb]

FWIW, I know someone who was very frustrated w/attempting to buy bank owned and seeing banks take a lesser offer cash, rather than their higher offer, but loan. Eventually they just were able to get cash from parents and made a lowball offer on a bank owned. They were successful in getting the house, then they did a loan on the house and paid the parents back. I don’t know if that’s an option. Just bringing it up. I’ve seen the bank be more inclined to go w/cash offers.

[jpinpb]

FWIW, I know someone who was very frustrated w/attempting to buy bank owned and seeing banks take a lesser offer cash, rather than their higher offer, but loan. Eventually they just were able to get cash from parents and made a lowball offer on a bank owned. They were successful in getting the house, then they did a loan on the house and paid the parents back. I don’t know if that’s an option. Just bringing it up. I’ve seen the bank be more inclined to go w/cash offers.

[jpinpb]

FWIW, I know someone who was very frustrated w/attempting to buy bank owned and seeing banks take a lesser offer cash, rather than their higher offer, but loan. Eventually they just were able to get cash from parents and made a lowball offer on a bank owned. They were successful in getting the house, then they did a loan on the house and paid the parents back. I don’t know if that’s an option. Just bringing it up. I’ve seen the bank be more inclined to go w/cash offers.

[jpinpb]

FWIW, I know someone who was very frustrated w/attempting to buy bank owned and seeing banks take a lesser offer cash, rather than their higher offer, but loan. Eventually they just were able to get cash from parents and made a lowball offer on a bank owned. They were successful in getting the house, then they did a loan on the house and paid the parents back. I don’t know if that’s an option. Just bringing it up. I’ve seen the bank be more inclined to go w/cash offers.

[Author]

Posts