South Florida speculators outbid average homebuyers (bank owned, foreclosures, rent)

[fauve]

South Florida Speculators Outbid Average Homebuyers

[rkumar3]

I fully agree... i see this on a daily basis. To get a real bank owned bargain you have to have cash. In fact most of the 'steals' for cash at above asking price.

[granitelady]

I just went through that experience on a personal level, it took 9 months to get an offer accepted on a house, I put offers on 6 properties and everytime I was outbid by speculators just to see the house go back on the market a couple of months later. I finally bought the home I'm living now and it only happened because I offered full price and I was prequalified for a loan so I was able to close in less than 30 days.

[fauve]

Here we go again.

[TANaples]

Originally Posted by fauve

Here we go again.

I was thinking exactly the same thing.

[♥♥PRINC3Ss♥♥]

There will always be flippers, but I don't think they are as many as the article states, well at least not cash speculators. What banks are doing now days is setting low asking prices and they usually just ignore any offers below those. If the bank doesn't sell a property they might relist it for a lower price. The best way to know if you are paying a fair value is to check the selling price of the recently sold properties in that area.

There is an advantage when you have cash, but it's not that huge considering that you could be investing that money. Banks still prefer a higher financed offer over a lower cash offer, the difference is not that huger 5k or 10k if you get very lucky or the bank is really desperate to get rid of the property. Property values are still falling in many areas, many foreclosures are still to come, so it is a huge risk but some people make a living out of this.

[Shoegal1075]

Originally Posted by ♥♥PRINC3Ss♥♥

There will always be flippers, but I don't think they are as many as the article states, well at least not cash speculators. What banks are doing now days is setting low asking prices and they usually just ignore any offers below those. If the bank doesn't sell a property they might relist it for a lower price. The best way to know if you are paying a fair value is to check the selling price of the recently sold properties in that area.

There is an advantage when you have cash, but it's not that huge considering that you could be investing that money. Banks still prefer a higher financed offer over a lower cash offer, the difference is not that huger 5k or 10k if you get very lucky or the bank is really desperate to get rid of the property. Property values are still falling in many areas, many foreclosures are still to come, so it is a huge risk but some people make a living out of this.

Princess - how do you know this to be fact? I have heard the exact opposite so, I am very interested in this point.

[granitelady]

Originally Posted by fauve

Here we go again.

was this meant for my comment? sorry! I won't mention it again on any other threads

[fauve]

Originally Posted by granitelady

was this meant for my comment? sorry! I won't mention it again on any other threads

oh gosh no - not like that. I meant it like here we go again...the prices will run up again - the whole bubble & bust cycle. Your story is exactly the sort of thing the article was talking about! I didn't know you went through all that before you got your house. Plus, even if I had heard the story a dozen times, Im just not that rude, lol

[♥♥PRINC3Ss♥♥]

Originally Posted by Chelsa1075

Princess - how do you know this to be fact? I have heard the exact opposite so, I am very interested in this point.

I did say I think. I was helping a relative with a cash purchase and didn't really see any advantage. Banks are holding foreclosures (I know that bacause I know many people that are not making payments and are still living in their properties.) so there is always some competition. When I went to see the properties most buyers looked like families and not investors. It's easier to invest 60 or 80k in a condo than in a single family home. You can still rent the condo and make profit. Not everybody has 200 or 250k available for a cash home purchase and you can easily be outbid by someone that is gonna finance the extra 10k or 15k for The next 30 years, their mortage payment is not gonna increase by much.

I say listen to other cash purchasers. Buying a property is very stressful and many people are willing to pay more when they fall in love with a home.