Stop low-balling. You’re NOT dealing with one person. You’re dealing with a panel of people. Think of dealing with robots. Electronic people. Once a month at the bank about 7 people enter an office room and look at 100 foreclosed properties in 30 minutes. Your offer/bid is looked at for 30 seconds then tossed into another pile of papers. There are no negotiations with these robots. Refuse to budge on all cash offers because you are obviously low-balling. Why concentrate on this property when there are many better properties here in Phoenix.
If the home you are interested in is overpriced, why are you bidding on it? And the appraisal might be way off to the listing price. So why so excited about buying an over priced home. I don’t get it. You won’t qualify for the loan.
Move on stop wasting time…..
Regardless to any one reading this post, I highly recommend you completely sidestep the Freddie properties. The fallacy of "bidding wars" on every property to me is no different from them telling you how strong the housing market was at the top. Over-priced nets no buyers. Hence, why you have single family homes on the market here for well over a year with no offers. As a buyer, I can tell you it simply is not worth the hassle.
Thanks again to every one who responded, I appreciate it very much.
Stop playing the victim and offer more for the properties or don't.
#1 rule in real estate..
Buyers don't have to buy.
Sellers don't have to sell.
Go get another home that is not "so overpriced"
Sometimes you just get a asset manager that will not move on price..
Good luck out there.
Shoot me an e-mail. I’m not a realtor. I’m not a mortgage guy. I’m an investor. You have a lot to learn about the Phoenix market. I can teach you anything you want to know. I can tell you where to buy. Where not to buy. I can explain techniques and avoid problems. Example: Freddie, Fannie, HUD and anything else.
You’re doing this all wrong.
You don't need to buy an overpriced home.
I will question the rational based on square footage, a real appraisal does not utilize price per square foot as a method of valuation.
What are the real comps? What are the differences? Adjust and determine the real value, not price per square foot.
Price per square foot may be some general indicator but don't take it too far in the process.
From a lender's perspective, I have no idea why Freddie seems to be so much tougher than Fannie. I have done a number of Fannie deals with no problems (had a $70,000 purchase; the appraisal came back at $60,000--that is about a 15% reduction--and they approved it right away).
Not that you asked, but it carries over to their handling of HARP refinances--many lenders will do high combined loan-to-values (amount owed on a first and second mortgage divided by curent value) with Fannie Mae's program, but relatively hard to find those who will do so with Freddie.
It will be interesting to see what others have to say...