Cash offers … banks slitting their own throats?

[AK]

OK, so it’s no secret that banks/servicers/listing agents/etc. almost invariably go with low all-cash offers on REOs and, in some cases, short sales. Since REOs and short sales constitute the overwhelming majority of transactions, banks are, in effect, driving comps lower and lower.

I keep hearing about overwhelming demand and wild bidding wars, but when I look at the closings I see many houses going at or below asking. In some cases less than what I’d offered.

Now that banks and listing agents have helped set these low comps, they’re complaining that the new Fannie/Freddie appraisal standards are hurting business. Maybe this explains the increasing number of REO listings that will consider VA offers … since VA, whatever its real or imagined problems, isn’t using the new Freddie/Fannie appraisal form.

Sorry guys, but if you’d been selling to “real people” at real prices, you wouldn’t have put yourselves in a downward spiral right now 🙂

[bsrsharma]

That is what is to be expected in a credit crunch, isn’t it? Cash is King. The banking system needs to build up cash reserves as much as possible and this seems logical. Lower comps will make homes more affordable and help deflate the bubble. What is to complain?

[bsrsharma]

That is what is to be expected in a credit crunch, isn’t it? Cash is King. The banking system needs to build up cash reserves as much as possible and this seems logical. Lower comps will make homes more affordable and help deflate the bubble. What is to complain?

[bsrsharma]

That is what is to be expected in a credit crunch, isn’t it? Cash is King. The banking system needs to build up cash reserves as much as possible and this seems logical. Lower comps will make homes more affordable and help deflate the bubble. What is to complain?

[bsrsharma]

That is what is to be expected in a credit crunch, isn’t it? Cash is King. The banking system needs to build up cash reserves as much as possible and this seems logical. Lower comps will make homes more affordable and help deflate the bubble. What is to complain?

[bsrsharma]

That is what is to be expected in a credit crunch, isn’t it? Cash is King. The banking system needs to build up cash reserves as much as possible and this seems logical. Lower comps will make homes more affordable and help deflate the bubble. What is to complain?

[AK]

Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.

[AK]

Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.

[AK]

Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.

[AK]

Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.

[AK]

Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.

[UCGal]

[quote=AK]Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.[/quote]

I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.

[UCGal]

[quote=AK]Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.[/quote]

I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.

[UCGal]

[quote=AK]Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.[/quote]

I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.

[UCGal]

[quote=AK]Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.[/quote]

I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.

[Author]

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