derekhonda
06-25-2009, 12:42 PM
So, just trying to pick your brain. As a few of you know I have been house shopping for about 8 months now, to absolutely no luck. Lately, I have just been putting in low ball offers like crazy, and randomly...always getting second place.
I'm single, have some change saved up, and very adaptable. I don't need to live on a golf course or in a certain school district, of course I am looking at these things for resale purposes, but overall, I am just looking to find one of those "deal of the year" houses that come along once in a great while, get it bought, live in it 3 to 5 years, sell it make some money, go bigger and better for a more "life long" house.
Anyways, I havn't been going the normal route when looking at a house, I have been doing bank forclosures, short sales, sherrif sales, and more recently hud houses.
Hud houses are a "secret" online auction. A house is opened up for 2 weeks, You look at it, then you place a bid online, and at the end of the two weeks, highest bidder gets it.
Here lately I have put in four offers.
house #1 listed at 89,000
put in a 65,000, sold for 72k, 2nd place
house #2 listed at 120k
put in a 102, sold for 110, 2nd place
house #3, listed at 15k (yes 15 k, great property just needed a ton of work)
put in a 17k offer (over list price) sold for 32,500, 2nd place
house #4 listed at 108k
put in an 88, sold for 111,500, second place
Now, I'm not sure who all caught onto the trend, but people here lately have started paying more than the list price on the houses to ensure they would get them. The thing is, those idiot way overpaid! On the last one, he technically could have purchased the house for $88,001, and now I recognize he did not know what I had offered, but he still over paid by about 20 grand.
To me, there are two scenerios taking place. People are feeling more confident in the market, are taking advantage of the low interest rates and the federal credit for the first time home buyers......or......they are idiots. They simply still don't realize that prices are so beat up they should not overpay for a house. You wouldn't walk into a ford dealership and go "oh that truck is great, and I see its only $40,000. If you will sell it to me right now, I will gladly pay you 50k."
My dad has been telling me that I ought to jus tkeep holding out, he keeps fearing the worst and says its just gonna crash and burn coming up and i'd be better off holding onto the money I have saved up. My dad has always been a very smart man financially in my eyes, And I sort of understand what he is saying, I'm just trying to see what everyone elses opinions are on the current housing market.
I'm single, have some change saved up, and very adaptable. I don't need to live on a golf course or in a certain school district, of course I am looking at these things for resale purposes, but overall, I am just looking to find one of those "deal of the year" houses that come along once in a great while, get it bought, live in it 3 to 5 years, sell it make some money, go bigger and better for a more "life long" house.
Anyways, I havn't been going the normal route when looking at a house, I have been doing bank forclosures, short sales, sherrif sales, and more recently hud houses.
Hud houses are a "secret" online auction. A house is opened up for 2 weeks, You look at it, then you place a bid online, and at the end of the two weeks, highest bidder gets it.
Here lately I have put in four offers.
house #1 listed at 89,000
put in a 65,000, sold for 72k, 2nd place
house #2 listed at 120k
put in a 102, sold for 110, 2nd place
house #3, listed at 15k (yes 15 k, great property just needed a ton of work)
put in a 17k offer (over list price) sold for 32,500, 2nd place
house #4 listed at 108k
put in an 88, sold for 111,500, second place
Now, I'm not sure who all caught onto the trend, but people here lately have started paying more than the list price on the houses to ensure they would get them. The thing is, those idiot way overpaid! On the last one, he technically could have purchased the house for $88,001, and now I recognize he did not know what I had offered, but he still over paid by about 20 grand.
To me, there are two scenerios taking place. People are feeling more confident in the market, are taking advantage of the low interest rates and the federal credit for the first time home buyers......or......they are idiots. They simply still don't realize that prices are so beat up they should not overpay for a house. You wouldn't walk into a ford dealership and go "oh that truck is great, and I see its only $40,000. If you will sell it to me right now, I will gladly pay you 50k."
My dad has been telling me that I ought to jus tkeep holding out, he keeps fearing the worst and says its just gonna crash and burn coming up and i'd be better off holding onto the money I have saved up. My dad has always been a very smart man financially in my eyes, And I sort of understand what he is saying, I'm just trying to see what everyone elses opinions are on the current housing market.