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It's supposed to be a buyer's market but, you'd never know it. We bid $245K for a bank owned home ... same as the listed price ... which was totally within comps. Clean offer ... we paid closing costs.
Six other people bid also. From what we were told there were other bids submitted after the bank's deadline also.
They asked us to resubmit offers since there were multiple bidders so we increased the bid to $255K. We have VA financing so we figured it would be re-adjusted since VA appraisals are very conservative.
However, somebody bid $275K and won. I don't know how this house is going to appraise for that since a much larger house in the same neighborhood just sold for $255K.
I guess they're either counting on a re-adjustment with the appraisal or ... the whole process is rigged.
Spare me the lectures about how the market is still tanking, etc. It really doesn't matter if I can't buy a house in the neighborhood I want.
I'm now seriously thinking about building instead of dealing with these bidding wars.
Sorry to hear you lost. Sometime people get emotional during bidding and want stuff "at any cost".
I've seen it happen at estate auctions and farm auctions.
So, just take a deep breath and plod on forward with the next plan.
Sorry to hear you lost. Sometime people get emotional during bidding and want stuff "at any cost".
Or they're bidding too high knowing it won't appraise out that much and hoping for an re-adjustment later. We thought about playing that game but there still was a risk of paying much more than we intended.
Be glad you didn't get it, and the person who got it paid too much and it's not worth what they paid for it. that's how people get into trouble. Your still safe and there's a house out there just for you. You just have not found it yet.
Be glad you didn't get it, and the person who got it paid too much and it's not worth what they paid for it. that's how people get into trouble. Your still safe and there's a house out there just for you. You just have not found it yet.
Shane,
I like your quote under your user name. Clever. While I try to engage my brain, Sheri, I'm sorry you didn't get the house. I know it's very disappointing, especially considering how long and how careful you were to offer on just the right one for you!
As for the folks who "paid too much"? i am not sure if that's the case and the bank appraisal might go through just fine since you said the crummy ones that were beat up still went for the low 200's. But what's most important about this is that these homes were once appraised at 550,000 or more, according to you and the Peak market, so $275,000 is still 50% off peak, which is quite a hefty drop and still seems like quite a deal. Correction goes through many phases, but unless they start creeping back up towards the "peak" (which even I understand is not likely to happen), it would not be unreasonable to think that even if someone bid $300,000, it's still a good deal. Foreclosed homes, and the fact that you have many in the neighborhood you are seeking, does not mean the prices aren't "distorted" in some way by the lower, trashed homes. In reality, foreclosure prices are rock bottom, in most cases, and usually still below market value, even in a falling market. This sounds like a possibility of thinking that because the homes have fallen to the low to mid 2's, all of them should be there. That's not always the case, depending on sq. footage, ammenities, lot location, etc.... I would guess the $275,000 will come through the appraisal just fine. Keep looking and take this as a good example. Hopefully you'll get the next one. I'm sorry you didn't get this one because I know you really wanted it. Maybe the deal will fall through. Take Care.
We always suspected that this deal was rigged. The listing agent was very slow to let us look at the property, etc.
I don't think $275K is a real number ... I just think they used that to clinch the bid so it would be adjusted later on appraisal. While it is a very nice property that price is not anywhere near market value right now.
However, in the event I have to look at paying $275K or more just because of these bidding situations ... I might as well start looking at building my own custom home and get exactly what I want.
FWIW, just because you didn't get the house at a low bid, doesn't mean that it's not a "buyer's market". After all, as fairmarketvalue pointed out above, $275,000 is still 50% off of the price that house was appraised at at one time (not that long ago, either), so unless it was totally trashed, a buyer - just not you - got a deal.
FWIW, just because you didn't get the house at a low bid, doesn't mean that it's not a "buyer's market". After all, as fairmarketvalue pointed out above, $275,000 is still 50% off of the price that house was appraised at at one time (not that long ago, either), so unless it was totally trashed, a buyer - just not you - got a deal.
Yeah but ... what does the previous $580,000 sales price two years ago mean? Nothing ... especially since the person who borrowed on that amount defaulted. We all know about the liar loans, etc. Obviously that price had no relationship to real market value.
Besides ... a $275,000 mortgage is definitely getting way above market rents in the area which, to me, is overpriced.
Its not a buyers market everywhere at all - the media wants everyone to think that way. Now perhaps it is in your own market, thankfully not in mine. Not saying I am selling 3 homes a week, but it's steady and the homes are selling if they are reasonably priced.
Good luck with everything!!!
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