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This California (or NY or wherever) talk makes me smile because my mother in law about flipped when she heard what we had to pay for a VERY modest (1100 sq ft) house in Wyoming. She's from rural Kansas herself. Markets and prices (and incomes) are VERY different from one area to another.
I always think it's amusing that people from CA and NYC always seem to think that what happens there happens everywhere in the US. Most of these people have a true warped sense of reality and don't realize those areas are not the center of the universe.
There is a guy in our office who does nothing but list foreclosures. Most get multiple offers because they are great deals. Many areas of DFW sell extremely strong, many areas are extremely weak.
I've been beat out on 4 different houses in three months that I have been looking, all by investors with cash offers! All were REO and had multiple offers! Any house that is in good shape is gone within 24 hours around here. Makes it really tough on us buyers with mortgage approval. Every offer is countered with "highest and best" because of the multiple offers. Since I've lost out on these 4 houses i can tell you around here it is true that they are getting multiple offers.
I always think it's amusing that people from CA and NYC always seem to think that what happens there happens everywhere in the US.
Having lived in the NYC tri state area many times, this makes a lot of sense. Both coasts have been bubble/bust prone for decades. And each time, some folk say home values will never, ever return to their former peaks and yet the bubble eventually reinflates.
I have lost out on 2 houses to "highest & best". Both were REO. The 1st one was a good thing that I didn't get it (turned out the lake in the spring is a SWAMP in July), this last one just 3 weeks ago I was REALLY disappointed. I bid over $6,000 (my Obamabucks) over asking and was sure it was mine, but alas, some numnut bid 30K over asking which was absolutely absurd. That was about $5k more than the house was worth in move in condition and it wasnt! But hey......lost it fair & square. What will really burn me up though is that if it doesn't appraise, which it very well may not, and the bank lowers the price to at or below my offer I'm gonna be ticked!
PS - I'm in the Detroit Metro area and not a realtor. It does happen and in very depressed markets and please don't stereotype realtors as liars, not only is it not nice, its simply not true!
What will really burn me up though is that if it doesn't appraise, which it very well may not, and the bank lowers the price to at or below my offer I'm gonna be ticked!
Many lenders are including appraisal clauses in their contracts, in that if it doesn't appraise to the offer, the buyer has to come up with the difference.
That's also why many are heavy on the earnest money requirements. If the buyer is putting down 5% or more right off the bat, then the chances of them walking away from that is much slimmer than one who's only going in with 1%.
I moved from Ohio to CA in 1989, took a significant pay cut and knew we wouldn't ever be able to afford a home there, as frugal as we were. Left 7 years later and it's only gotten worse, it seems. In some fields, income levels weren't on par at all.
Quote:
Originally Posted by campmom123
This California (or NY or wherever) talk makes me smile because my mother in law about flipped when she heard what we had to pay for a VERY modest (1100 sq ft) house in Wyoming. She's from rural Kansas herself. Markets and prices (and incomes) are VERY different from one area to another.
I moved from Ohio to CA in 1989, took a significant pay cut and knew we wouldn't ever be able to afford a home there, as frugal as we were. Left 7 years later and it's only gotten worse, it seems. In some fields, income levels weren't on par at all.
Oh I know what you mean. We could finally buy here in Wyoming, because after living in Colorado and parts of MT we never could-- homes were pricey, rent even more so, and pay for most people was meagar at best. Wyoming is a bit more affordable to us, but to my mother in law it's still rediculous. Because in her town in KS you can buy a nice home for $30k. But you can't get much of a job, so it's still expensive to them. That's what i meant by my income comment.
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
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I really hate generalizations
Otherwise I could start this by saying, Just so you know, Zillow and Google does not, you, a Realtor or Industry Analyst make.
In Nothern Virginia starting about March 2009 Every listing under $300,000 was getting multiple offers, now it is homes under $400,000. It is documented. I have had as many as 17 offers that I presented on homes that I had listed, yes presented because in Virginia we are required by law to present every viable offer or we can loose our license. This did not include the ones that were rejected for not submitting earnest money or standard legally required disclosures.
Currently I have a Brother in Law in the Tucson Az market that keeps low-balling offers that get rejected and he just can't figure it out. He is willing to pay more but thinks that it is some sort of game. The banks so far have not even countered his offers. I am not representing him and do not know his agent but he and I have had this conversation about lying Bank Executives and multiple offers and he continues to submit low ball, unqualified, undocumented offers and can't figure out why they are being rejected. He thinks the lenders are giving them to their friends.... so many people would be in jail.
If you are trying to purchase a home and are not having any success then perhaps you should either hire a Realtor, take your Realtors advice regarding the offer or if you really don't trust them, change Realtors.
As far as the homes listed on-again, off-again they are probably short-sales. The owner is trying to sell for less than they owe on the mortgage which requires bank approval. These can take a very long time especially if the would be buyer is low balling the offer. Or in some cases the buyer decides they are not willing to wait for the response and withdraws the offer. Many times it takes the bank three to six months to get these into the process dependent upon the area. In many cases an unqualified or undocumented offer is rejected not countered because they don't want to deal with all of the back and forth, they just have too much volume to worry with so much negotiation and think you are unreasonable anyway so why bother. They know qualified Realtors will come in with Documented offers making it easy for everyone.
Really good info for you folks that think the bank is oblivious, by the time a second mortgage payment is missed or at the very least when offers start coming in a Broker Price Opinion, (BPO) is Ordered. The BPO is usually an order placed with a local Realtor to provide a DOCUMENTED Price Opinion for a specific property based upon the comparables, (similar homes, similar lot size) within a specific radius, Listed and Sold within the last three months. This is because the bank wants to know what the home is worth thus they assess your offer.
There are National Association of Realtors Certifications as well as State and Local Certifications for Realtors working Foreclosure and Short Sales that are intended to help you select a qualified Realtor such as SFR, RCC, 203K Specialist, CDHE
Generally meet your Realtor, Prepare interview questions, about Certifications, Experience, Brokerage Experience, Lender Affiliations and if you are still on the fence ask for their sales statistics from the MLS systems for home sales and listings by Brokerage and Agent. New Agents are hungry so don't rule them out especially recognizing that they came into the profession at this time, in this market, but then it becomes important to know how well they are supported by their Broker. In Virginia you can go on line at DPOR and see if a Realtor has ever had an ethics violation.
Just so you know
Quote:
Originally Posted by Delron
LOL I love how realtors/agents/sellers are trying to play buyers with these blod faced lies; it's truly unfortunate for the foolish buyers that get suckered into it and do end up offering.
It's just like the ridiculous games of the bubble...and certainly, with the lack of actual listed inventory on many markets, some properties are getting multiple offers, but it's certainly not anywhere near as many as people think.
I've seen multiple homes for sale for months (if not years, listed on again/off again), an offer is made and the realtor said they had 'multiple offers' and to 'submit your best offer'.
When the potential buyer balks (often to the chagrin of the buyer's agent/realtor of course!), the seller/realtor comes back and they 'wanted to work with him'. THERE WERE NO MULTIPLE OFFERS. THE REALTOR/SELLER IS A LIAR. This goes without saying, but you should take anything an agent/realtor says with a grain of salt.
Here's a handy rule of thumb when it comes to such statements in today's market:
the statement "Multiple offers" is usually (but not always) a lie to get you to bid.
the statement "1 or 2 offers" is usually a lie and that there are no other bidders.
the statement "3 or 4 offers" is a stretch of the truth that usually means they have one offer already - maybe two.
Anything above that that is specific (i.e. 5 offers, 11 offers, 17 offers) is usually the truth - they usually dont make up numbers this high.
Yep ... some areas just aren't meant to be owned by the middle class, and will always be considered "overpriced" to the masses. I can vouch that there's no way I could afford buying in the desirable parts of the the Westside ... no bank would allow for a any front-end ratio in excess of 100% nowadays.
4 years ago, OTOH ... a secretary (or an administrative assistant) making making $10k a month? A gardener (-er, I meant landscape designer) making $15k a month? A warehouse stocker (or is that logistics manager?) making $20k a month? And you own a 2005 Lincoln Navigator (oops, I meant a 1985 Ford Tempo)? Of course we believe ya!
LOL, indeed. Except they were driving Lincoln Navigators, Ford Excursions/Expeditions, Caddy Escaladdies etc. Of course, they didn't own them, and many have been repo'd.
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over asking which was absolutely absurd. That was about $5k more than the house was worth in move in condition and it wasnt! But hey......lost it fair & square. What will really burn me up though is that if it doesn't appraise, which it very well may not, and the bank lowers the price to at or below my offer I'm gonna be ticked!
I really hate generalizations
