Be patient. In hot markets especially under $250,000 we are seeing multiple offers on properties. I am a firm believer that if it is meant to be, it will be.

Many times a client will love a house and not have an offer accepted only to find another one that is really their dream home and it does get accepted.

Good luck and have faith. It will happen for you!

Anna Wilk

Diane,

I don't have anything else to add to what the other agents have graciously offered, except for sympathy pains! I have several clients in the same position as you are. Just know that you are not alone.

Keep the faith!

Krista

Diane,

Hi. Sorry you are having such a frustrating time. Your story is not unusual unfortunately. Especially in the REO properties there seems to be the perception that FHA financing is more difficult or more stringent. There are FHA guidelines that can make some of the REO properties more difficult. For example a kitchen will need to have all the appliances for the home to pass the appraisal process.

The other reason cash offers are more attractive in this current market is the appraisal and loan process. Because of the change in the lending guidelines, the appraisal and loan process is taking longer. This is also way a cash offer is considered more attractive because with a cash offer there is not the need for an appraisal or loan contingencies.

When submitting an offer your Realtor and Mortgage consultant will want to do a good job of laying out how they are going to assist you in making sure the deal will close. Even with that informaiton though, if there is a cash offer on the table, it may be harder to compete. Also based on your price point, have you considered a condo? You may find that you have more options available.

Hope this helps and sorry you have had a frustrating time....

Lisa Cartolano
Alain Pinel Realtors

Hello Diane, You are not asking for too much and noone is to blame here, not your agent or loan. Due to the low interest rates and the REOs being priced below market value, it's an oppurtunity very few want to miss. Hence, the multiple offers rec'd on each property. Your best bet is to get the comps of what that home is worth and put in the highest bid you're comfortable with. Good luck to you Diane. Please feel free to call or email me for any further information.

Kamal Randhawa
Broker
510-932-1066

Diane

You are not alone. But people learn as they move forward, and get the hang of writing offers. First, it isn't just investors buying homes. There are other folks who waited until the time is right for them to buy.

What you have to remember, particularly in competitive situations, is that you may only have one chance to submit your BEST and HIGHEST offer. The highest price doesn't always get the deal; sometimes, it's the terms.

How do you prepare to write an offer?

1. Learn as much as you can about the market values/comps in the area. Know what properties are selling for. If you find a home listed for $299K, but you know that comps value the property at $350k, don't be fooled into thinking you can get it for less than $299K.

2. What kind of property are writing an offer for? An REO? If it's an REO, know that the bank would have already gotten at least two BPOs (broker's price opinion) to determine the list price of the property. So don't think you can write an offer for 50% less than list price considering that the list price is probably already discounted.

3. If it's a short sale ---- how many loans? If more than one loan, are they the same lenders? Besides knowing the comps, know how much is owed. And have patience. But in the meantime, keep looking. Different lenders operate at different speeds. Expect 45 days or longer before you even get an acknowledgment from the short sale lender.

4. With FHA loans, note that most lenders cannot close escrow for a shorter period than 45 days. If that's the case, I've seen where many REOs are either reluctant to accommodate buyers with FHA loans, or tend to favor buyers with shorter escrow periods of 30 days or less. Also, most REOs are AS IS, with no credits for repairs or closing costs.

5. Review your terms. You can make them stronger by shortening buyer investigation periods from the standard 17 days to 7-10 days. However, I cannot recommend shortening the loan appraisal and approval process especially for FHA loans where they require at least two appraisals.

6. Are you asking for credits for repairs or closing costs? On REOs, it's unlikely that you will get it. How reasonable are your requests for credits? If you wrote an offer for way below list price, and then ask for credits towards closing costs AND repairs, and to top that off, you are also getting an FHA loan that may take 45 days or longer to close....then yes, your offer is terribly weak.

7. Be fast, be quick. If your realtor has set it up so that you receive automatic email updates every time a property meeting your criteria becomes available, don't wait until the weekend to look. Try to see it as soon as possible. Other buyers aren't waiting either. Neither should you ---- unless the listing specifies an offer date

8. Have you interviewed other lenders? Can you do a conventional instead of an FHA loan? If you haven't done so yet, then do.

9. Remember that if you qualify for the $8K first time home buyer tax credit, that you may be able to apply that credit as additional down payment (but not THE down payment) or towards your closing costs --- this should help you at escrow.

10. Take time to review the properties you wrote an offer on. After 90 days, some of them have already closed. Did they close at above list price? By how much? This should give you an even better idea of what it takes to get a successful offer accepted.

Good luck!

Hello Diane and thanks for your question.

I understand your frustration. Unfortunately, at $170,000 as a purchase price, you are bidding against quite a few others looking for homes. If you discuss this matter with your Realtor, I'm sure that, in checking on the homes that you were interested in purchasing, the Seller may have had as many as 20-30 offers for the same property. Perhaps you did not get the home because other offers were considerably higher, or, as may be the case this market, offers appeared that were "cash" offers--which is the strongest offer as it does not require any financing or financing contingencies. The higher the sales price, the less the number of potential buyers, and at $170,000, you're completing against a lot of homeowners trying to buy homes.

Until the number of buyers thins out or the inventory increases, you're likely to find the competition to be great for any home in your price bracket. My suggestion is to talk with your agent to see if he or she has any suggestions regarding purchasing a home. Otherwise, unless you're pressed for time, you might consider waiting until late summer when inventory is still high, but many of the buyers leave the market.

Good luck and happy house hunting!

Sincerely,
Grace Morioka, SRES, epPro
Area Pro Realty
San Jose, cA

There are many investors in that price range that are making all cash offers and it's tough for home buyers such as yourself to compete. Hang in there, something will come up.