offer in. now we play the game…(REO)

[SHILOH]

I think fundamentally this market cannot be sustained and yet I expected to not buy until 2011-but the tax credit is really making things confusing. I have made two offers – one was an REO around Mt. Helix area and the other a short sale in Lakeside.
Both were offered more than the asking price and both were bought much higher. On the first one it was a fixer n a decent location and the offer was $5000 over asking. On the second one in Lakeside it was a small house on fairly large lot and offer was around the asking price on the high end, but the asking price varied by $25K. The short-seller had spent a lot of $ on upgrades, electrical and some kitchen remodel. The I think prices are still not stable and there seems to be bidding wars in this market – and with the tax credit, this is not going to go away soon. So the goverment again has a vested interest in creating the bidding war to raise comps and receive property taxes based on the assessment… But the experience of this repeatedly happening to myself and others makes me think the market is ustable and unhealthy. Also – some friends of mine lost a beautiful home that they had dumped thousands of money in — I think it was on 4 acres. But they lost it and I don’t know the details yet but I am guessing they mismanaged their upgrades and used helocs and got in over their heads. It was a short sale//they owned the home for many years prior to the big bubble.

[pemeliza]

“So the goverment again has a vested interest in creating the bidding war to raise comps”

The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.

Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.

Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.

[pemeliza]

“So the goverment again has a vested interest in creating the bidding war to raise comps”

The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.

Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.

Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.

[pemeliza]

“So the goverment again has a vested interest in creating the bidding war to raise comps”

The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.

Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.

Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.

[pemeliza]

“So the goverment again has a vested interest in creating the bidding war to raise comps”

The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.

Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.

Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.

[pemeliza]

“So the goverment again has a vested interest in creating the bidding war to raise comps”

The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.

Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.

Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.

[sdrealtor]

I spend alot of time educating buyer clients that asking prices are often meaningless and deceptive. It depends upon the sellers motivation and/or the agents skill/experience.

The simple truth is buyers who have looked at dozens of properties in an area and/or price range are much more current on what prices should be. I say ignore ignore the asking price, check out the comps, compare it with what you’ve seen and put your own value on it rather than following the sellers lead. There are enough buyers out there for fairly priced homes that they will find their fair value. Stealing a good one is unlikely.

[sdrealtor]

I spend alot of time educating buyer clients that asking prices are often meaningless and deceptive. It depends upon the sellers motivation and/or the agents skill/experience.

The simple truth is buyers who have looked at dozens of properties in an area and/or price range are much more current on what prices should be. I say ignore ignore the asking price, check out the comps, compare it with what you’ve seen and put your own value on it rather than following the sellers lead. There are enough buyers out there for fairly priced homes that they will find their fair value. Stealing a good one is unlikely.

[sdrealtor]

I spend alot of time educating buyer clients that asking prices are often meaningless and deceptive. It depends upon the sellers motivation and/or the agents skill/experience.

The simple truth is buyers who have looked at dozens of properties in an area and/or price range are much more current on what prices should be. I say ignore ignore the asking price, check out the comps, compare it with what you’ve seen and put your own value on it rather than following the sellers lead. There are enough buyers out there for fairly priced homes that they will find their fair value. Stealing a good one is unlikely.

[sdrealtor]

I spend alot of time educating buyer clients that asking prices are often meaningless and deceptive. It depends upon the sellers motivation and/or the agents skill/experience.

The simple truth is buyers who have looked at dozens of properties in an area and/or price range are much more current on what prices should be. I say ignore ignore the asking price, check out the comps, compare it with what you’ve seen and put your own value on it rather than following the sellers lead. There are enough buyers out there for fairly priced homes that they will find their fair value. Stealing a good one is unlikely.

[sdrealtor]

I spend alot of time educating buyer clients that asking prices are often meaningless and deceptive. It depends upon the sellers motivation and/or the agents skill/experience.

The simple truth is buyers who have looked at dozens of properties in an area and/or price range are much more current on what prices should be. I say ignore ignore the asking price, check out the comps, compare it with what you’ve seen and put your own value on it rather than following the sellers lead. There are enough buyers out there for fairly priced homes that they will find their fair value. Stealing a good one is unlikely.

[sdrealtor]

To follow up on what UR said it is not necessary to use the listing agent. Yes there are some shady REO realtors but the lions share of them go to a handful of top REO agents who go by the book. These agents are making high 6-figures and even 7 figures in this market. They have far too much to risk by slipping their own inferior buyers in. Risking that type of guaranteed income to make a couple extra grand would be stupid and they know that.

[sdrealtor]

To follow up on what UR said it is not necessary to use the listing agent. Yes there are some shady REO realtors but the lions share of them go to a handful of top REO agents who go by the book. These agents are making high 6-figures and even 7 figures in this market. They have far too much to risk by slipping their own inferior buyers in. Risking that type of guaranteed income to make a couple extra grand would be stupid and they know that.

[sdrealtor]

To follow up on what UR said it is not necessary to use the listing agent. Yes there are some shady REO realtors but the lions share of them go to a handful of top REO agents who go by the book. These agents are making high 6-figures and even 7 figures in this market. They have far too much to risk by slipping their own inferior buyers in. Risking that type of guaranteed income to make a couple extra grand would be stupid and they know that.

[sdrealtor]

To follow up on what UR said it is not necessary to use the listing agent. Yes there are some shady REO realtors but the lions share of them go to a handful of top REO agents who go by the book. These agents are making high 6-figures and even 7 figures in this market. They have far too much to risk by slipping their own inferior buyers in. Risking that type of guaranteed income to make a couple extra grand would be stupid and they know that.

[Author]

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