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Old 12-02-2012, 06:40 PM
 
132 posts, read 232,035 times
Reputation: 124

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Unlike many markets, there is sufficient inventory in the $100k to 200k market. Noted in another thread , I described a broker demanding a 6 month exclusive, an up front $400 fee and a demand i make up the difference if a full 3% commission was not paid. I was able to easily hook up with another broker who didn't ask for any of this.

I located the properties I wanted myself with access to my brokers database. I showed myself the properties.I only selected from active listings- no short sales or foreclosures. Either of the last two words require a relationship with a broker willing to work them or you pay up front. I passed and figured I would pay 10% more.

I liked the Seven Hills and Summerlin area. I made a full cash offer. I was listening to the Executive airport traffic and I found a similar property to mine, exact same model, two blocks away, listed by the same broker with $27k less differential. I brought this up as leverage for my broker in negotiations. The issue is what negotiations? Im sure we are all familiar with the car salesmen who let you bake in an office for hours when you are negotiating. This appears to be the same dynamic. Apparently, if you make an offer , it is normal to wait several days for a counter. The plus side, is, in Las Vegas you have choices, if you dont like your deal. All I have to say is the real estate industry has taken a turn for the bizarre. This appears to neither be a buyers' or a sellers' market.

It is a fallacy to generalize, but my anecdotal evidence so far points to a questionable work ethic in the industry. I will see this week if I get the property or make another offer on another piece of property.
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Old 12-03-2012, 08:00 AM
 
2,180 posts, read 3,624,675 times
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buying or selling...
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Old 12-03-2012, 08:12 AM
 
9,952 posts, read 8,438,330 times
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The problem with walking away from the shorts and forclosures is the fact that without that, you may not be able to get the proper price. People who are in a position to sell directly most like are in a positioin to pay their mortgage. Also, I have to think most bought before the crash (unless you're buying a flip), and still have a fanatasy about getting a price based on what they paid pre-crash. If you can get them to sell at post crash comps, fine. But I can't believe that's so easy.

The shorts and forclosures have to deal with reality.
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Old 12-03-2012, 08:59 AM
 
132 posts, read 232,035 times
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I thought my statement : This is neither a buyers' or sellers market was probably the one worthwhile statement I made in my original post. Thus, I concluded it was a bizarre market.

I'm the buyer. Here is my reality. I have the money in the bank. It is earning very low interest. I pay rent. If I buy a personal residence I can live in it or rent it out and I will still be making a better return on my capital. I will completely eliminate writing a monthly rent check.

I would rather buy a short sale or a foreclosure for the bargain element. However, I'm willing to be one of the guys who will help raise your down market for convenience. Shopping endlessly for a house is not that fun. I would rather do other things. Does this make sense?
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Old 12-03-2012, 09:52 AM
 
9,952 posts, read 8,438,330 times
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In some cases yes, but maybe not in yours. If you're not in a hurry, I'd look for the maximum bargain which would be a short or REO.

Quote:
Originally Posted by oomph View Post
I would rather buy a short sale or a foreclosure for the bargain element. However, I'm willing to be one of the guys who will help raise your down market for convenience. Shopping endlessly for a house is not that fun. I would rather do other things. Does this make sense?
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Old 12-03-2012, 11:13 AM
 
7,671 posts, read 11,275,729 times
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Quote:
Originally Posted by oomph View Post
Apparently, if you make an offer , it is normal to wait several days for a counter. The plus side, is, in Las Vegas you have choices, if you dont like your deal. All I have to say is the real estate industry has taken a turn for the bizarre. This appears to neither be a buyers' or a sellers' market.
How did you let yourself get into that situation? Every offer on every house I've ever bought - including the one I bought in Vegas - had a time limit attached to it. If the seller didn't respond by the time indicated, my offer became null and void. I always received a response before that happened.

Interestingly, I just bought a condo in Miami Beach. The unit went on the market on a Friday, I toured it Saturday morning, and my agent faxed over an offer that evening giving the seller 24hrs in which to accept or counter. The seller's agent responded the next morning stating that her seller would not be responding by the deadline. He apparently wanted to test the market and see what other offers he might receive. Through my agent, I said fine, we would be moving on then. Later that day, 5 minutes before the offer was due to expire, the agent called and notified us that the seller was accepting our offer after all and the signed contract would be faxed to us that evening.
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Old 12-03-2012, 11:38 AM
 
132 posts, read 232,035 times
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Good call Mad Man. I believe my expiration date is 5 pm today, 12/3.

BBMW, the reality is anyone who does not buy a short sale or REO is going to have to deal with active listings. The price for this , Im guessing is around 10 to 20% higher. I guess I'm not willing to accept the 10%. I would accept 5%. Plus or minus $10k on $200k is not going to be a deal killer for me, if I like the house. It will be a personal residence.

The other reality is this: If you want an agent to negotiate a short sale or REO, then you have to pay them a fee in advance to do it. The problem then becomes assessing the quality of these experts. The real estate field has such a low market entry, there will be lots of research to decide who is worth a damn.
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Old 12-03-2012, 01:31 PM
 
261 posts, read 353,613 times
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Be patient, there are apparently more distressed properties coming on the market next year and there will likely be at least some economic downturn. I have no problem waiting for my short sale. What drives me mad is the fact that someone knows where we are in the process but they could care less about telling us.
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Old 12-03-2012, 02:37 PM
 
12,973 posts, read 12,134,962 times
Reputation: 5398
Quote:
Originally Posted by oomph View Post
Good call Mad Man. I believe my expiration date is 5 pm today, 12/3.

BBMW, the reality is anyone who does not buy a short sale or REO is going to have to deal with active listings. The price for this , Im guessing is around 10 to 20% higher. I guess I'm not willing to accept the 10%. I would accept 5%. Plus or minus $10k on $200k is not going to be a deal killer for me, if I like the house. It will be a personal residence.

The other reality is this: If you want an agent to negotiate a short sale or REO, then you have to pay them a fee in advance to do it. The problem then becomes assessing the quality of these experts. The real estate field has such a low market entry, there will be lots of research to decide who is worth a damn.
I know of no reason that you have to pay a fee for a short or REO. REOs are often easier than classics. Shorts take a little work but the real work on a short is on the seller's side. aBoth REOs and Shorts are highly competitive at the moment.

The average premium on a classic is about 20%. Some is due to mix...ie the big houses are less often short or REO than classics. But mostly it is simply a different price line. Right now shorts are running 5% less than REOs. All the above for single families.

Drop dead clauses don't work on REOs. Never have. They are routinely violated on other transactions at this point in the market. Basically you are done when the clause runs out if you chose to be...but the seller's agent may well respond three days later. And that agent will be shocked if you claim you really meant the 24 hours.
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Old 12-03-2012, 02:53 PM
 
132 posts, read 232,035 times
Reputation: 124
lvoc, I'm not sure i understand what the term classic means? Is that a regular sale, where the listing does not say short or repossession?

In my world, a regular sale would have to negotiate down to compete price wise with shorts and repos. Who is going to want to pay that high a premium? I was willing to pay 5%, but that is just because i am lazy in this area.

Once again I sincerely appreciate all the feedback from everyone I get here. it is valuable.
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