[quote=CA renter]Like Domo said, I think a lot of the govt-backed buyers can’t get through fast enough. The good deals go VERY quickly to professional flippers with cash. It’s probably not because they are the only ones willing to buy these properties, but that they are the only ones who have the time and ability to get no-nonsense offers in quickly.
It’s also probably because professional flippers don’t worry about lowballing or “offending” sellers. They will offer what they think the property is worth, and the seller can either take it or leave it. That’s why they get the lower priced homes — they ask for it.[/quote]
What you two are saying is basically describing what I initially said, which is under the ideal condition, yes, the method of payment should not matter. But in reality, it does matter.
One other thing, I don’t have data behind this claim, but I’m pretty sure there are much more buyers who can’t/won’t buy fixer than all cash buyers who don’t want to buy turn key homes. If this is true, and I think it is, then this is the supply/demand I’m talking about. Demand for turn key homes are higher than demand for fixer. Today, supply for fixer is higher than turn key homes because of the high ratio of foreclosures/SS vs equity sales. There is a reason why appraisers are adding $ on top of the sold price of a SS and foreclosure sale when they use them as comps.
