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I've been very skeptical of the "multiple offer" ghosts and cheerleaders for quite some time. I was also waiting to hear what Soprano said about his recent experience. I think looking at how long it has been on the market will tell you.
HP, I don't know that my particular experience will be helpful to you or not. I started looking at SFRs in the $125K - $150K range. That was my imposed ceiling because I wanted to pay cash. I also limited my search to newer construction (5 years old or newer).
At my particular price point *most* of the SFRs I looked at required more sweat equity than I have available right now. Many of them needed paint, carpeting, appliances, fixtures, yard work, minor repairs, etc. If I lived in Vegas, that wouldn't be a problem at all. In fact, that sector might just be where you'll find the best deals. However, as a remote buyer it presented a number of logistical challenges for me.
I then started to direct my search at condos and townhomes at the same price point. Many of them were still pretty rough while others were virtually turnkey. During my trip, I made cash offers on three properties; one of them needed a good bit of work, one of them was in great shape, needing next to nothing, the final one could have been moved into the next day.
All three of my offers were below list. The one requiring a good bit of work accepted my offer before my return flight had landed back at home. The other two countered my offers by very small amounts. I was already second guessing my decision to buy at this particular time so I told the realtor I wasn't going to negotiate at all. Understandably, it's confounding to a realtor to have a buyer who's not going to negotiate. The realtor went back to the trustee on the property I liked most and pitched the same offer I had already made, but with me paying the customary buyer paid closing costs. This time the trustee accepted. So ultimately, I did budge a little.
I wouldn't be terribly surprised to find that all the properties had multiple offers on them. I didn't think to ask my realtor because I didn't care. I knew what I was willing to offer and anything else wasn't terribly important to me. I did see that my second choice property had moved into pending status on the MLS just a day or two after mine had. The rougher property also went into pending status shortly after the second choice property.
HP, I don't know that my particular experience will be helpful to you or not. I started looking at SFRs in the $125K - $150K range. That was my imposed ceiling because I wanted to pay cash. I also limited my search to newer construction (5 years old or newer).
At my particular price point *most* of the SFRs I looked at required more sweat equity than I have available right now. Many of them needed paint, carpeting, appliances, fixtures, yard work, minor repairs, etc. If I lived in Vegas, that wouldn't be a problem at all. In fact, that sector might just be where you'll find the best deals. However, as a remote buyer it presented a number of logistical challenges for me.
Five years is a bit confining. The problem is that it got sloppy in a number of dimensions between 3 and 5 year out. You basically are confining yourself to those hit the hardest and thus most likely to take it out on the property. I would suggest going back to 10 years rather than 5...but I don't see it as a point worth arguing hard over.
REO doll ups can be quite inexpensive. Particularly if you don't have to do much in the appliance dept. Most RE Agent should be able to get you a quick quote.
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I then started to direct my search at condos and townhomes at the same price point. Many of them were still pretty rough while others were virtually turnkey. During my trip, I made cash offers on three properties; one of them needed a good bit of work, one of them was in great shape, needing next to nothing, the final one could have been moved into the next day.
All three of my offers were below list. The one requiring a good bit of work accepted my offer before my return flight had landed back at home. The other two countered my offers by very small amounts. I was already second guessing my decision to buy at this particular time so I told the realtor I wasn't going to negotiate at all. Understandably, it's confounding to a realtor to have a buyer who's not going to negotiate. The realtor went back to the trustee on the property I liked most and pitched the same offer I had already made, but with me paying the customary buyer paid closing costs. This time the trustee accepted. So ultimately, I did budge a little.
Boy you have weird views. Why would it hurt the RE Agent if you don't want to negotiate? And then you negotiated...sheesh
Note that townhouses actually run a few more dollars per SF than SFRs. Condos tend to be a good bit less...But townhouses actually are a little more.
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wouldn't be terribly surprised to find that all the properties had multiple offers on them. I didn't think to ask my realtor because I didn't care. I knew what I was willing to offer and anything else wasn't terribly important to me. I did see that my second choice property had moved into pending status on the MLS just a day or two after mine had. The rougher property also went into pending status shortly after the second choice property.
Did you ever take a serious look at shorts? It helps to have an agent you trust but it is not required. Shorts in general offer better economics and a better property at the cost of uncertainty. But if you don't have a hard time requirement they also offer a much better outcome.
Five years is a bit confining. The problem is that it got sloppy in a number of dimensions between 3 and 5 year out. You basically are confining yourself to those hit the hardest and thus most likely to take it out on the property. I would suggest going back to 10 years rather than 5...but I don't see it as a point worth arguing hard over.
In general I prefer newer construction because of the advances in energy efficient construction and materials. As well as newer design and styling cues; paint color, moldings, cabinets, appliance selection, etc. All of these things can be found in older homes too, I just have an easier time finding them in the newer homes. The five year cutoff was an arbitrary selection.
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REO doll ups can be quite inexpensive. Particularly if you don't have to do much in the appliance dept. Most RE Agent should be able to get you a quick quote.
On a pure $ per sft basis, these may be some of the best buys going. If I were a local, I almost certainly would have went this way. I just don't have the time or inclination right now to pick up one of these up remotely.
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Boy you have weird views. Why would it hurt the RE Agent if you don't want to negotiate? And then you negotiated...sheesh
I didn't say it "hurt" my realtor, I said it confounded my realtor. Those are two very different conditions. Now that you mention it though, given the expression on my realtor's face when I said I didn't intend to respond to any counteroffer from the trustee, it looked like it may have hurt a little bit.
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Did you ever take a serious look at shorts? It helps to have an agent you trust but it is not required. Shorts in general offer better economics and a better property at the cost of uncertainty. But if you don't have a hard time requirement they also offer a much better outcome.
But you know all that don't you?
I have a close friend that recently closed on a short sale in Roseville, CA. I don't have the patience to endure half of what she went through to close on a short. So yes, I did look at short sales, just long enough to determine that's not how I wanted to transact business. For those with a higher pain threshold than I, shorts may be an acceptable and rewarding option.
Were there many business cards at the properties--indicating lookers?
HP, not really. I went through this same exercise last December in Prescott/Prescott Valley, AZ. I looked at a boatload of foreclosures during that trip and in some of those homes there were dozens of business cards on the counters. In Vegas, that wasn't the case. I don't know if that's a reliable indicator for buyer traffic though because I don't recall my realtor ever leaving behind a card.
drinkme, apparently I need to recant my position on the laws of supply and demand. It's come to my attention that the Vegas RE market is controlled by an institution that has managed to repeal those basic economic principles.
Here's one anecdote that might explain the apparent contradiction - but this source has already been dismissed once as "simply not true" in this thread:
Eight weeks ago (name withheld) bought four houses for $50,000 each from a bank. He already owned 9 of them so the Bank called him to see if he wanted them when they got them back from others. He had paid anywhere from 80k to 150 k over the years for the ones he already owned.
Last week he gets a call from the same bank that he paid 50k to. They have two more of the same homes for sale. He looks at them, one is perfect condition, the other one needs paint, carpet and a new stove. Get this, the bank says he can buy them BOTH for $39,000 each. This is the same bank he just paid $50,000 for four of them just a few weeks ago, they know he will pay 50k. WHY lower the price to 39k for these?
why would you care how many cards were on the table? We are not playin poker here
No one saw my property good thing too.
good reason to buy an reo that needs new efficient energy savings is the tax credit. Or perhaps you are not in that arena?
Tony Soprano you are not really quite like Tony are ya?
Not so good at negotiatin imho
My friend is stationed at Ft Irwin and looking to move to Vegas when he gets out. Started looking for homes 3 months ago and finally settled on the area north of Ann Road to the side opposite Nellis(sorry, I don't know what its called). When he first started looking, he said places were listing at 130-140K. That was in January.
The place he ultimately bought...Built in 2000, 1900+sq ft, 3 bed, 2 1/2 bath. Very nice neighborhood IMO. North of Ann and near Tropical.
He placed four offers on places. All had multiple offers. All listings were under $120K and all sales were under the $130K mark. That tells me that listing prices are dropped to induce bidding wars. The place he got, the bank accepted the first offer(his) at $6K over list....but still well under that $130K mark.
So feeding frenzy? I guess. But leaving out relevant facts...such as listing prices have been dropped $20-30K.....leaves the reader of your posts out in the cold as to what the actual situation is. A lie of omission.
Here's one anecdote that might explain the apparent contradiction - but this source has already been dismissed once as "simply not true" in this thread:
Eight weeks ago (name withheld) bought four houses for $50,000 each from a bank. He already owned 9 of them so the Bank called him to see if he wanted them when they got them back from others. He had paid anywhere from 80k to 150 k over the years for the ones he already owned.
Last week he gets a call from the same bank that he paid 50k to. They have two more of the same homes for sale. He looks at them, one is perfect condition, the other one needs paint, carpet and a new stove. Get this, the bank says he can buy them BOTH for $39,000 each. This is the same bank he just paid $50,000 for four of them just a few weeks ago, they know he will pay 50k. WHY lower the price to 39k for these?
There are some shenanigans going on behind the scenes that we can't see but may get glimpses into. These margins are pretty small for the brokers/realtors involved so something other than highest and best offer dictates some of these sales. Some are obvious such as a large cash position, ability to close quickly and good credit. Some seem nebulous such as personal relationships between agents and asset managers and properties being presented to favored clients first before hitting the open market. I have been the beneficiary of this once. Others seem downright creepy as I have heard stories from realtors, maybe true or not true, of sex between bank agents and realtors so that they can list the bank's properties and clients of said realtors obviously are in a better position to close a sale. This last statement take with a humongous grain of salt as I may be talking to disgruntled realtors who may not be favored for whatever reason and are making up tall tales. Still plausible though if u think about it. It certainly seems to be about more than money though in a lot of instances.
Perhaps I should find a listing from a female Realtor, offer 30% above list & throw in a night of passionate lovemaking???
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