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Old 01-16-2013, 10:48 AM
 
2,729 posts, read 5,202,404 times
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Quote:
Originally Posted by EngGirl View Post
Very well said!!!

And it was my point that some people simply OVERPAYING in these bidding wars... That's why I was asking earlier what these people are thinking?!! And no wonder why we see some threads with cry all over it about appraisal being way below their offer price

Investors are smart, they are not paying more.. They prefer to get a true deal... Otherwise it doesn't make sence for them to buy in the first place. Complains I heard from people were that Sellers prefer cash buyers aka investors over others.
I am sure you know about an auto-regressive model. That's what it is as far as appraisers go. Until a switch from pattern comes they will continue in either direction, coming in higher during a rise (bubble) and coming in low, during last few years. They still continue to come low. Only a cash buyers or those who have significant down payment will start to change the pattern. Because they can afford the asking price if they think that is fair value for them. Then it is all be feeding itself...Media will hype the recovery....people will try to jump in...and appraisers will follow and the cycle will continue.

I think for you specifically, EngGirl, you may be up against seasonal factors too. Normally, house inventories are low and price spike at this time of year. While keeping a close eye on the market may be your best bet is to wait for the Spring season to get a good deal when supply picks up as more people comes in to sale. I specifically decided to refinance in winter for this reason, supply is small and prices will be higher. But make no mistake that, if one look at year over year price and sale (that should be what has to be looked at) everything shows this year has higher values than last. But two points don't make a trend so the jury is still out there if the pattern holds.

In the mean time, I would just relax and read all the entertainment of the bidding war
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Old 01-16-2013, 10:55 AM
 
27,214 posts, read 46,741,218 times
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Quote:
Originally Posted by EngGirl View Post
Very well said!!!

And it was my point that some people simply OVERPAYING in these bidding wars... That's why I was asking earlier what these people are thinking?!! And no wonder why we see some threads with cry all over it about appraisal being way below their offer price

Investors are smart, they are not paying more.. They prefer to get a true deal... Otherwise it doesn't make sence for them to buy in the first place. Complains I heard from people were that Sellers prefer cash buyers aka investors over others.
Depends who the seller is...if it is a bankowned than it comes down where the mortgage for the buyer will be taken. If the bank will beable to provide a loan than they probably like the mortgage/financing offer better sice they can collect fees and lots of interest over the enxt years...above a cash deal.
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Old 01-16-2013, 11:10 AM
 
27,214 posts, read 46,741,218 times
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Recent example of home sold in Wesley Chapel and the history of the house;

listed in 2006 for $ 365K up to all the way till 2008 listed for over $ 300K...

Foreclosed on and relisted in 2012 for $ 143,900, sold 2 months later for $ 139 K by investor and minimum fixed up...carpet, appliances and 2 new A/C units and some interior and exterior paint and sod...not even blinds!

Relisted in 2012 for $ 245K which is more than $ 100 K over the sold price...and no appraisal woud have come back for that price (btw it is located with the backyard on St Rd 54!!

Sold for $ 239 K a 119 days later to another investor who now is trying to rent it out for $ 600 above the average rental amounts in the area!

One smart investor and one stupid investor from Out of State who bought more than 20 homes in the area...!

It will make the values go a little bit up but not much for the next appraisal...

Perhaps this investor wants to keep it for 20 years
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Old 01-16-2013, 02:11 PM
 
3,826 posts, read 5,805,690 times
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Quote:
Originally Posted by bentlebee View Post
Depends who the seller is...if it is a bankowned than it comes down where the mortgage for the buyer will be taken. If the bank will beable to provide a loan than they probably like the mortgage/financing offer better sice they can collect fees and lots of interest over the enxt years...above a cash deal.
Is it true only if the buyer would use Seller's mortgage? For example, if BOA is selling a house and someone came in with approved mortgage letter from Bank ABC and someone with cash offer, do you think BOA would care about mortgage through another lender?
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Old 01-16-2013, 02:23 PM
 
3,826 posts, read 5,805,690 times
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Quote:
Originally Posted by bentlebee View Post
Recent example of home sold in Wesley Chapel and the history of the house;

listed in 2006 for $ 365K up to all the way till 2008 listed for over $ 300K...

Foreclosed on and relisted in 2012 for $ 143,900, sold 2 months later for $ 139 K by investor and minimum fixed up...carpet, appliances and 2 new A/C units and some interior and exterior paint and sod...not even blinds!

Relisted in 2012 for $ 245K which is more than $ 100 K over the sold price...and no appraisal woud have come back for that price (btw it is located with the backyard on St Rd 54!!

Sold for $ 239 K a 119 days later to another investor who now is trying to rent it out for $ 600 above the average rental amounts in the area!

One smart investor and one stupid investor from Out of State who bought more than 20 homes in the area...!

It will make the values go a little bit up but not much for the next appraisal...

Perhaps this investor wants to keep it for 20 years
LOL
Second inverstor is not a smart person. I bet he didn't use local realtor
But I see at least few homes in WC-LOL area purchased by realtor 6 months ago for 150K and listed now for 240K... No bidding wars... No offers... I bet they think market is slow in Tampa Bay Area

There is a reason I would not buy a quickly fixed house from the investor. They covered all potential problems - not solved it! It's s big deal! I see many houses on our street sitting vacant for 3-4 even 5 years now!!! With no utilities -> no AC -> possible mold inside walls.
I made an offer recently for one of this houses, lower than asking price by factoring repair cost to bring it to live-ready condition (I discovered mold myself, don't ask me how... took a quote to change drywalls from friend of mine and carpet to the cheapest one, to replace grass at the front)... Guess what? My offer was rejected. The one they accept is still below asking price but not much... It's not public info, but some agents talk to much in such a small world ... I guess people either didn't know about some issues with that long time vacant house or just wanted that house at any cast no matter what.... I loved that house and wanted it really bad, but I didn't see the point to pay more than I offered and deal with all issues while I can buy move-in ready house sold by owner cheaper...
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Old 01-16-2013, 05:22 PM
 
27,214 posts, read 46,741,218 times
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Quote:
Originally Posted by EngGirl View Post
Is it true only if the buyer would use Seller's mortgage? For example, if BOA is selling a house and someone came in with approved mortgage letter from Bank ABC and someone with cash offer, do you think BOA would care about mortgage through another lender?
No...they would probably like the cash offer better since the bottom line will be the same for them but more chances of getting it closed...banks think in $ and with their business brains and if they need to get it off their balance sheet or not.
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Old 01-16-2013, 05:31 PM
 
27,214 posts, read 46,741,218 times
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Quote:
Originally Posted by EngGirl View Post
LOL
Second inverstor is not a smart person. I bet he didn't use local realtor
But I see at least few homes in WC-LOL area purchased by realtor 6 months ago for 150K and listed now for 240K... No bidding wars... No offers... I bet they think market is slow in Tampa Bay Area

There is a reason I would not buy a quickly fixed house from the investor. They covered all potential problems - not solved it! It's s big deal! I see many houses on our street sitting vacant for 3-4 even 5 years now!!! With no utilities -> no AC -> possible mold inside walls.
I made an offer recently for one of this houses, lower than asking price by factoring repair cost to bring it to live-ready condition (I discovered mold myself, don't ask me how... took a quote to change drywalls from friend of mine and carpet to the cheapest one, to replace grass at the front)... Guess what? My offer was rejected. The one they accept is still below asking price but not much... It's not public info, but some agents talk to much in such a small world ... I guess people either didn't know about some issues with that long time vacant house or just wanted that house at any cast no matter what.... I loved that house and wanted it really bad, but I didn't see the point to pay more than I offered and deal with all issues while I can buy move-in ready house sold by owner cheaper...
Perhaps the same investor as the one I mentioned....sounds very similar and to me it was very suprising that this investor got one dumb$$ to buy it for that kind of money...


On the second part...I totally agree with you about not buying a quickly fixed up foreclosed or short sale from an investor who bought it a few weeks or months ago.

We had some investors who still bought them after they were longer on the market and the other investor seem to have run out of money...we ended up fixing the remainder and renting them out but many items were remodeled so badly and even a person like us who is not a contractor could see things but some of the investors send their own people to look at them after we send them some listings and they go by what that person is advicing and a cheap home inspectors since they shop around and don't want to use any of the home inspectors and try to save money on termite and mold inspections.

Other investors who are fixing them up and selling them quickly by related realtors and often don't disclose their relationship and "forget" to mention the sinkhole, etc...

Some look very nice but are fixed up cheap so the eye will like it and the price is above market value...maybe not much but many times people fall for the nice esthetics instead of what is also important...

I have many names of realtors we avoid due to being in that business and their not disclosure of affiliation with title companies they demand the closing to be held at regardless if they are the seller or buyer and from the start you keep feeling something is wrong but often it is hard to get that across to the clients but luckily in the end none of our clients did business with them by closing at their title company!
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Old 01-16-2013, 06:18 PM
 
Location: tampa bay
7,126 posts, read 8,651,821 times
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Not scientific...but I would say North Pinellas homes are selling at 2004 prices.
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Old 01-16-2013, 06:32 PM
 
Location: North of South, South of North
8,704 posts, read 10,899,542 times
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Quote:
Originally Posted by Irishiis49 View Post
Not scientific...but I would say North Pinellas homes are selling at 2004 prices.
Very unscientifically, I would have to say that is close. Although, it is different from one neighborhood to another. It will be interesting to see how much they rise and for how long, depending on the scarcity of homes and the amount of bidding wars. Hopefully, for stability sake, they rise evenly and modestly over time and not like we have seen in the last few bubbles. We don't plan on selling this time to take advantage of the market. This is our forever home. But I know human nature. People are greedy and as soon as they think they can buy a house and treat it like an ATM machine again, they will.
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