Multiple Offers!

It seems that many people aren't aware of the phenomenon that has re-appeared: multiple offers. With all of the foreclosures and short sales, and prices just being forced downward in general, there are "buys" out there that are so great that the investor-client is jumping on the bandwagon and making offers. When that happens, the offers are usually "cash", no contingencies, at or above asking, and there's usually multiple offers. I know some people think when they see a house listed for, say, $350K, they are under the impression that they can get that house for something like $280K. Well, that's just not the case anymore. Now that homes are being priced below market value, due to all the bank owned homes, houses are selling for MORE THAN they are listed at!

When you make an offer, it has to be your "best and highest" because the banks usually aren't countering in the instances where there are multiple offers. They simply accept the best offer, and reject the rest. The "best" offer is the one that gives the bank the highest bottom line. Yes, cash can influence it, but so many of these offers are coming from investors that have cash, that it's not that special to have cash anymore (in the lower price ranges). It is still a bit of a novelty to offer cash in the higher priced homes, but the ones we are getting multiple offers on are usually cash. So, if you see a great buy, make your best and highest offer on it and cross your fingers!

Short Sales -- Ugh!

I've been wrestling with a short sale now for 4 or 5 months...I know that's not the longest out there, but it's been driving me insane! I got approval on the first about 1-2 months ago...but the second is just dragging their feet. I can't get the negotiator to write the approval letter, even though she has verbally approved the short sale. What in the world could be taking her so long? Is she an imbecile? My recommendation to anyone looking to buy real estate is: avoid short sales!!! They are a nightmare. Did you know that 70% of the people going into escrow (the first time) on a short sale drop out before it closes escrow? That's unbelievable...but I don't blame people for getting tired of waiting. REOs, on the contrary, only have a 12% drop out rate. Not nearly as bad.