Short sale backlash. Buyers have heard the horror stories of short sale sales taking months and not getting approved or worse, the house foreclosing while they're under contract. Because of this, buyers are avoiding these homes if they are looking to move within 60 days. Some agents avoid them all together even when the listing agent advertises being a 'distressed property expert' or designations insinuating so. Truth is no one can force a bank to approve a price no matter how good the file is put together. The bank has the final say so and while an experienced agent and speed up the process, they cannot make a decision for the seller's lender.
First look periods. Fannie Mae, Freddie Mac, HUD as well as banks now have initial periods where they will only look at offers from owner occupants. Some banks have implemented a similar process and even have the 1st 3-7 days designated as marketing only and will not look at any offers from anyone. While these owner occupant only periods fend off investors to give buyers a chance it causes a frenzy and almost always causes a multiple offer situation before the bidding period is up. Fannie Mae and HUD both utilize online bidding so it enables them to track (multiple) offers more efficiently rather than waiting on listing agents to upload offers to them manually.
FHA loans. Most home buyers are utilizing FHA loans to finance their home purchases rather than conventional loans or paying cash. This means the homes must pass an FHA appraisal / criteria and be inhabitable. Buyers with FHA loans have to pass up on homes with excessive repairs needed, town homes/condos with HOA's that aren't FHA approved, and incomplete homes. This automatically narrows the field and concentrates these buyers to homes that are move-in ready. If a home is FHA ready, you can bet the attention and number offers will reflect it's condition.
Savvy Buyers & Investors. Savvy buyers and investors who have little or no emotional attachment to their upcoming home purchase will usually submit offers on multiple properties and negotiate multiple offers until they secure one at the desired price. Because of this, you will see homes that have been on the market less than 24 hours with offers. Some of these types of buyers will submit a 'blind' offer on a home where they've only assessed the value and not the home's condition since they bid on them sight unseen.
So with all of the homes with multiple offers and bidding wars causing sale prices to exceed the list price, is it still good time to buy? A resounding YES! With the right strategy, you can bid and win and secure the house you really want no matter how many offers are at play. How you ask? That's at least a 3 part series blog.........
