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I needed to do a 1031 and there was nothing good to buy and anything even close to being nice was gone instantly, sometime before it hit the multiple listing.
So, I bought new construction. They guaranteed that they could have it finished within my deadline, and they did. In a tract. There is absolutely no way to buy a decent building lot around here to do an owner build. The builder bought a farm and subdivided it.
I had to add about $60,000 to what I got from the sale of the 1031 property, but I got an excellent house in a lovely neighborhood, and got to choose the flooring, the colors, and the upgrades to get exactly what I wanted.
So that is one option for obtaining a house in a really tight market. You have to jump on it before the foundations are even poured.
Saw my friend with the bidding war yesterday. High bid was $30K over asking.
The issue will likely be with the appraisal. Just a guess. When we sold our house in Nashville we had multiple offers over asking price... really good offers. Everything was great until the first appraisal came in way lower than we were expecting... I think it was like 10k difference.
Now if the buyer has the cash up front, no issue, you're set to go! Unfortunately our buyer didn't and he couldn't even split the difference with us, so we ate the difference. I think the buyer changed lenders in the process and had a second appraisal as well. It was better than the first but not much better.
Hopefully you're friend doesn't have to go through with anything like that.
We're also in the midst of selling our house (in Elgin). Our realtor said inventory is low and buyers are serious. We've only had a couple of showings so far (listed a week ago). My gut says it may take a while to sell our house (even though it's pretty well updated/in good shape).
The issue will likely be with the appraisal. Just a guess. When we sold our house in Nashville we had multiple offers over asking price... really good offers. Everything was great until the first appraisal came in way lower than we were expecting... I think it was like 10k difference.
Now if the buyer has the cash up front, no issue, you're set to go! Unfortunately our buyer didn't and he couldn't even split the difference with us, so we ate the difference. I think the buyer changed lenders in the process and had a second appraisal as well. It was better than the first but not much better.
Hopefully you're friend doesn't have to go through with anything like that.
We're also in the midst of selling our house (in Elgin). Our realtor said inventory is low and buyers are serious. We've only had a couple of showings so far (listed a week ago). My gut says it may take a while to sell our house (even though it's pretty well updated/in good shape).
Yes, she's lived long enough to know it ain't over till it's over. All manner of things can still go wrong.
But it just goes to show the craziness of our times. Coronavirus and riots = bidding war.
......... Everything was great until the first appraisal came in way lower than we were expecting... .....
This is why sellers are so receptive to all cash offers and will often accept a lower offer if it is all cash instead of an offer that requires financing with a buyer who doesn't have a lot of down payment.
We just went through that in NJ. We had a very savvy agent that knew how to win a bidding war. We did extensive research on the areas, scoured listings.
The house we ended up buying she did some investigation to find out what motivated the sellers, how many people were bidding etc. Very happy with our houses there is truly nothing right now.
So glad for you!
As you know, we are moving to a small city. It's not some place I would have considered a hot spot at all. We've kept an eye on the market there since February and almost nothing decent in our price range has come on the market. If it does, it sells immediately.
We actually fell in love with a house that had been for sale for awhile, and I feel lucky and very relieved to have gotten it.
This is why sellers are so receptive to all cash offers and will often accept a lower offer if it is all cash instead of an offer that requires financing with a buyer who doesn't have a lot of down payment.
Yep, it's definitely an asset to have an offer like that.
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