Cash offers … banks slitting their own throats?

[bsrsharma]

‘Cash is king’ in market for foreclosed homes

As an aspiring first-time home buyer, Jay Nielsen hoped to find a cheap, bank-held foreclosure in Vallejo that he could finance with a Federal Housing Administration mortgage. What he didn’t expect was having to compete with buyers willing to pay in all cash.

“Since January, I’ve put in 10 bids (on foreclosed homes); some were up to $80,000 over asking price and were still turned down,” said Nielsen, 41, a medical assistant. Each time, the banks selected offers from investors with all-cash offers – even when those offers were lower than his, Nielsen said.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/23/MNTO197NHM.DTL

[all]

It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.

Prior to that I made several offers. More than one later closed at less than what I had offered.

Most ‘investors’ are industry insiders. They know listing agents or they know people who know listing agents. And I doubt the listing agent is just a silent proxy. The agent might be able to remove you from the race with a simple verbal remark.

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

[all]

It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.

Prior to that I made several offers. More than one later closed at less than what I had offered.

Most ‘investors’ are industry insiders. They know listing agents or they know people who know listing agents. And I doubt the listing agent is just a silent proxy. The agent might be able to remove you from the race with a simple verbal remark.

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

[all]

It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.

Prior to that I made several offers. More than one later closed at less than what I had offered.

Most ‘investors’ are industry insiders. They know listing agents or they know people who know listing agents. And I doubt the listing agent is just a silent proxy. The agent might be able to remove you from the race with a simple verbal remark.

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

[all]

It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.

Prior to that I made several offers. More than one later closed at less than what I had offered.

Most ‘investors’ are industry insiders. They know listing agents or they know people who know listing agents. And I doubt the listing agent is just a silent proxy. The agent might be able to remove you from the race with a simple verbal remark.

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

[all]

It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.

Prior to that I made several offers. More than one later closed at less than what I had offered.

Most ‘investors’ are industry insiders. They know listing agents or they know people who know listing agents. And I doubt the listing agent is just a silent proxy. The agent might be able to remove you from the race with a simple verbal remark.

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

[pemeliza]

“It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.
Prior to that I made several offers. More than one later closed at less than what I had offered.”

Although i have not tried this myself, I know people who have. In many cases, going directly to the listing agent has paid huge dividends. Honestly I don’t think cash is that big of an advantage if you are going to bring your own buyer’s agent (it really hasn’t given me the slightest advantage). I think the frustrated buyers are the ones working with the traditional buyer’s agents. Nevertheless I’m staying loyal for now.

[pemeliza]

“It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.
Prior to that I made several offers. More than one later closed at less than what I had offered.”

Although i have not tried this myself, I know people who have. In many cases, going directly to the listing agent has paid huge dividends. Honestly I don’t think cash is that big of an advantage if you are going to bring your own buyer’s agent (it really hasn’t given me the slightest advantage). I think the frustrated buyers are the ones working with the traditional buyer’s agents. Nevertheless I’m staying loyal for now.

[pemeliza]

“It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.
Prior to that I made several offers. More than one later closed at less than what I had offered.”

Although i have not tried this myself, I know people who have. In many cases, going directly to the listing agent has paid huge dividends. Honestly I don’t think cash is that big of an advantage if you are going to bring your own buyer’s agent (it really hasn’t given me the slightest advantage). I think the frustrated buyers are the ones working with the traditional buyer’s agents. Nevertheless I’m staying loyal for now.

[pemeliza]

“It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.
Prior to that I made several offers. More than one later closed at less than what I had offered.”

Although i have not tried this myself, I know people who have. In many cases, going directly to the listing agent has paid huge dividends. Honestly I don’t think cash is that big of an advantage if you are going to bring your own buyer’s agent (it really hasn’t given me the slightest advantage). I think the frustrated buyers are the ones working with the traditional buyer’s agents. Nevertheless I’m staying loyal for now.

[pemeliza]

“It might be an exception, but my 25% down offer on a $450K bank owned was accepted after I approached the listing agent directly. It closed a week ago.
Prior to that I made several offers. More than one later closed at less than what I had offered.”

Although i have not tried this myself, I know people who have. In many cases, going directly to the listing agent has paid huge dividends. Honestly I don’t think cash is that big of an advantage if you are going to bring your own buyer’s agent (it really hasn’t given me the slightest advantage). I think the frustrated buyers are the ones working with the traditional buyer’s agents. Nevertheless I’m staying loyal for now.

[bsrsharma]

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

That is probably the most important golden rule in REO buying – knowing how to make the sellers agent most happy. Bring her/him enough reward and anything is possible.

[bsrsharma]

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

That is probably the most important golden rule in REO buying – knowing how to make the sellers agent most happy. Bring her/him enough reward and anything is possible.

[bsrsharma]

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

That is probably the most important golden rule in REO buying – knowing how to make the sellers agent most happy. Bring her/him enough reward and anything is possible.

[bsrsharma]

I interacted with few dozens of agents over the past 24 months and very few gave me any reason to believe that they would not enhance their compensation at the expense of any of the parties involved.

That is probably the most important golden rule in REO buying – knowing how to make the sellers agent most happy. Bring her/him enough reward and anything is possible.

[Author]

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