[JohnG72]

I dont really see how event is wrong in his assessment.

I get paying a bit more for that "unique" property that may have add ons or features that will cost more money to build on another house. But that is not what event is talking about.

Event is talking about paying significantly more. $10K is 10% of a $100K house, yes yes? Thats hella significant...I realize its like a non existant monthly amount on a 30 year mortgage...what like $60/mo.....but its $10K + interest which is NOT insignificant, though shifty realtors will paint it as such.

And in particular in a still declining market. Its basically the equivalent of going into a car stealership and paying not only MSRP, which is moronic in the first place most of the time, but also paying the dealer "markup"....stuff thats easily negotiated away or where the discount can be obtained simply by walking into another dealership.

In other words, falling in love with a standard home and paying significantly above what an investor would pay, when there is another home just down the street or to be listed in the near future, just doesn't make good financial sense.

Los Angeles realtors play the "We've got other offers. You need to make your best and final offer" card. Seems like LV realtors play the "we've got cash offers" card. The difference being, in LA the realtors are lying or misleading. In Vegas, the realtors are telling partial truths. The selling agents do have cash offers, but the buyers agents don't tell their clients "Hey wait a bit. There's near unlimited shadow inventory and if you don't get this place, you'll get another one you like soon enough."

[olecapt]

Originally Posted by JohnG72

I dont really see how event is wrong in his assessment.

I get paying a bit more for that "unique" property that may have add ons or features that will cost more money to build on another house. But that is not what event is talking about.

Event is talking about paying significantly more. $10K is 10% of a $100K house, yes yes? Thats hella significant...I realize its like a non existant monthly amount on a 30 year mortgage...what like $60/mo.....but its $10K + interest which is NOT insignificant, though shifty realtors will paint it as such.

And in particular in a still declining market. Its basically the equivalent of going into a car stealership and paying not only MSRP, which is moronic in the first place most of the time, but also paying the dealer "markup"....stuff thats easily negotiated away or where the discount can be obtained simply by walking into another dealership.

In other words, falling in love with a standard home and paying significantly above what an investor would pay, when there is another home just down the street or to be listed in the near future, just doesn't make good financial sense.

Los Angeles realtors play the "We've got other offers. You need to make your best and final offer" card. Seems like LV realtors play the "we've got cash offers" card. The difference being, in LA the realtors are lying or misleading. In Vegas, the realtors are telling partial truths. The selling agents do have cash offers, but the buyers agents don't tell their clients "Hey wait a bit. There's near unlimited shadow inventory and if you don't get this place, you'll get another one you like soon enough."

You have it exactly wrong. The problem is that the investor offers more that it will appraise for. The reason is the investor is doing a financial return calculation which yields a higher value than an owner occupied appraisal. Happens virtually all the time below 125K.

[JohnG72]

Originally Posted by olecapt

You have it exactly wrong. The problem is that the investor offers more that it will appraise for. The reason is the investor is doing a financial return calculation which yields a higher value than an owner occupied appraisal. Happens virtually all the time below 125K.

Yeah, cause thats why Las Vegas homes are selling at 98% of list

[olecapt]

Originally Posted by JohnG72

Yeah, cause thats why Las Vegas homes are selling at 98% of list

You really don't understand this stuff.

What do you think list price has to do with an investor valuation or an appraisal?

[eventusstultorummagister]

Captain Bottom Caller strikes again.

[tony soprano]

Originally Posted by eventusstultorummagister

Captain Bottom Caller strikes again.

Holy smokes that's funny.

[Scott456]

Originally Posted by Danknee

Against the cash guys it is. These would be (highly competitive) rental properties where the ROI is what matters.

Imagine a cash buyer that offers $105k no strings attached, you offer $108k with a loan but contingent upon the house for appraising for $108k. Of course they would take the cash offer.

In this case, yes, you should offer $108K, and your offer will not be contigent upon obtaining a mortgage. You just need to make sure you have enough down payment (maybe at least 40%). You can still get a loan, and out bid the cash buyers.

[007 license to sell]

Hey buyers you need to know Fannie Mae has new guide lines when purchasing one of there foreclosed properties. You and your realtor need to know that if an appraisal goes 1 day past the 14 day allowance Fannie Mae will cancel the contract. Also if your lender goes one day past the close of escrow Fannie Mae will cancel contract. It's insane out here and as a buyer you need to know these things and make sure to keep on your realtor about this as well.