Home Buying in Warren>Question Details

mhluns, Home Buyer in Warren, MI

I'm giving up!!

Asked by mhluns, Warren, MI Thu Mar 21, 2013

I was raised with the idea by earning a good income, saving, and always paying my bills on time, that I would be able to buy a home of my own. Sadly, due to investors, with their large cash offers, my efforts to buy a home have been a total waste of my time. I'm tired of looking at houses and making bids that simply get rejected. When I first started making offers, I'd offer a little less than list price, then I began offering the list price. Finally, I started offering above list price. The notion of overbidding seems to go against conventional wisdom. Why would someone offer more money than what is being asked for something? When I told my parents that I was overbidding, they thought I lost my mind-- that they'd never offer more than the list price. I agree with them. Let's not even get started with the incompetent and dishonest realtors that I've met along my journey... Let the investors, realtors, and banks who got our economy in the mess that it is in keep the houses!

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Good Morning!

You are not alone in your frustration. Most buyers in today's market are experiencing the same thing. When a market changes from a buyers market to a sellers market we begin to experience a lower inventory and higher demand. If you're looking for foreclosed properties do as everyone has said and look during the "first look" period. At least at that time your looking with the same type of buyers as yourself. As Annette stated "list price" is not necessarily market value. Foreclosed properties have BPO's (Broker price opinions) and appraisals done before a property is listed. You should be working with an agent that is willing to run comps on any property you bid on. If you're purchasing FHA the home must appraise for purchase price in order to get the mortgage otherwise you would have to pay any overage upfront at closing. If you purchase a HUD home FHA there is no need for an appraisal since HUD has already done one.

It isn't going to accomplish anything by giving up other than your not buying a home when prices and interest are at their lowest values in years.

If you need the assistance of a hard working, honest and dedicated buyers agent give me a call.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
1 vote Thank Flag Link Fri Mar 22, 2013
I can understand your frustration, I as a realtor am frustrated also. For several reasons there is not enough inventory for the buyers we have. Most realtors I talk with right now prefer to have listings than buyers because we are showing homes, writing offers and then when those offers get rejected we are out showing the same buyers, writing more offers that might get rejected and they showing more houses. We do NOT get paid until we close so all that time, wear and tear on our vehicles and gas money is wasted. I am sorry that you feel you have met incompetent, dishonest realtors. I know a lot of good realtors and I for one am competent, honest and hard working and work for my buyers first and then for my paycheck. If you are interested in talking I would love to have you call me and I will see if I have any ideas for helping you purchase a home. If you are a fha buyer we are finding that conventional and cash offer are especially beating out fha offers but there are ways of purchasing even with an fha offer. Please call me at 586.489.6373 or email me at bdrob@mirealsource.com. I truly would love to try to help you.
Becky Drob
1 vote Thank Flag Link Fri Mar 22, 2013

I'm so sorry about your experience. At certain price points this is very common. One way to avoid investor bidding is to offer on a fannie mae or freddie mac during the first look period. That is designed to allow people who want to live in the property first opportunity to place offers, then if no offer is accepted, then it opens up to investors.
Another way is to bid on privately owned homes. there are alot of people who think they are getting a deal if its a foreclosure. That's not always true, Privately owned homes if priced right can be a great value & its easier to get an answer from private owners vs a forecosed home.
This is a sellers market. That means there are more buyers ready to buy & fewer homes. supply & demand make multiple offers happen & drives the prices up.
If there is a car for sale & 2 people want it, the price will go up. The value of a home is determined by what someone is willing to pay for it.
This is a great time to buy with low interest & prices still low. There are a lot of people who realize that but there's not enough homes for sale.
overbidding is very common. alot of foreclosed homes are priced low to encourage more people to view the home & bid themselves up.
Find a good buyers agent that will help you & listen to their advise. Your parents are not buying a house, you are. They are not professional realtors & are not familiar with todays market.

I hope this helps & I hope you get a home. Don't give up. You might just need a break but remember "the early bird gets the worm"
1 vote Thank Flag Link Thu Mar 21, 2013
Sorry that you feel the way you do. The inventory for homes is very low at this time and that is one of the reasons you are seeing multiple offers on properties. Interest rates are low and those people who lost their homes when all this started are looking to purchase again. There are many buyers with a shortage of homes. In this market it is very common to submit an offer over asking. That is what happens when more then one person wants the same home. It is called a sellers market. since I do not know or care to know who your past Realtor is, all Realtors are not the same. I hate dealing wth the few dishonest agents myself and if they are doing something unethical you can report them.

Without knowing what you qualify for, you might be looking in the wrong price range. You do not state if you are looking for foreclosures or private owned properties and your statement, Let the investors, realtors, and banks who got our economy in the mess that it is in keep the houses! That statement is not all true. We need to give you a better experience about home buying so you can get the home you deserve. Feel free to contact me, I would like to meet you and start your home search over on a better note. We are not the enemy, we are here to assist you in your search for a home.

Pam Bava, Reator
1 vote Thank Flag Link Thu Mar 21, 2013
Call me 586-709-7779 to discuss tomorrow.
1 vote Thank Flag Link Thu Mar 21, 2013
My buyers are experiencing the same thing. They offered list price at 119,900 and the bids were around $150,000, way over my buyer's maximum offering. The market has changed, and there is now a shortage of homes, and more home buyers than homes. i figure there are 6 buyers for every 1 good home that comes available. with those odds you'll need to always offer above asking price and yet if you have a loan package the property may not appraise at sale price and need to be adjusted down.
Tough times require a trusted Realtor, and past times have been hard on the realtors.
Glad to help and considered trustworthy by many,
Lauren Quigley, Advantage Realty Inc.
0 votes Thank Flag Link Thu Apr 4, 2013

You are not alone with these feelings......
However, from the sound of things you problem may be one of focusing only on the "distressed market." Short sales and foreclosures are challenging and often lead to your level of frustration.

My recommendation is to "not throw the baby out with the bath water" but adjust your search to include conventional opportunities. I believe there are opportunities in this sector and that you will see a difference....

Giving up accomplishes nothing.....get mad but get going!

0 votes Thank Flag Link Fri Mar 22, 2013
I agree, You should give up!

You are obviously attempting to purchase home(s) that is above your means and it is obvious to the seller.
Adjust your goals and make competitive offers. You'd be surprised how well that works.

You have mistaken "List Price" for market value. There are real bargains that can be obtained but not by those who flail about blindly. You will need a professional who trusts you to find the deals quickly.

You however, must be able, decisive, FAST and with the correct goals. Of course, your responses are fully understandable and predictable from those who do not know what they are doing and are looking for someone else to blame. When you are serious, call a pro, if you can find one who will work with you.

As you have come to realize, it's not as easy as the pros make it appear.
Best of success to you.
0 votes Thank Flag Link Fri Mar 22, 2013
I certainly hope you are not an agent because you can't even keep your own thoughts straight as evidenced above. This is totally unhelpful and weirdly assertive. You also don't know what you are talking about.
Flag Fri Jun 14, 2013
First of all, let's set the record straight. Investors do not make large cash offers. Yes, they do make cash offers but they do not overpay for houses. Investors understand that they make money when they buy the house, not when they sell it. So to make money, the investor has to buy the house right or under market price. I am an investor and have made 30 offers in the past 6 weeks and was able to buy only one house. So whomever is feeding you the line about investors should get their facts straight. And every investor that I have spoken with has just about given up trying to buy houses because we are being beat out by owner occupants.

Also, most investors do not buy the houses that are in perfect condition. Investors buy homes that are in need of much work. In this way, the investor can fix up the house, add value and be able to sell it for a profit. Many of the houses investors buy, the average homeowner would not offer on because the amount of work and cost to fix up would many times may the house prohibitive for the average homebuyer.

Also, there is a shortage of good houses on the market. People are not listing their houses right now. Therefore, when a good property comes on the market for a good price, there are so many people bidding on the house that the price is being bid up way over the listed price. Last week I wrote an offer for my client. He offered $23,000 over the listed price. This was a house that was listed for $100,000 but someone bid higher than him. And, he was not an investor, just someone trying to buy a house.

Monika offered you good advice when she said that many houses are only open for owner occupant bidding. These include HUD homes, homepath homes Fannie Mae and Freddie Mac. Only people who are going to live in those homes are allowed to bid during the initial bidding period which can run from 14 - 30 days. And, most of those homes never stay around long enought for investors to bid on. They are bought by people who are going to make it their home. The ones that are not sold to owner occupants during the initial period are often times in such bad shape and many investors don't want them either.

As in all fields, there are good and bad. You will find a few great realtors, a few really bad realtors and a lot of mediocre realtors. But that is the same with teachers, engineers, auto workers, salesman, etc. So let's not generalize about the entire profession just because you ended up with some of the bad ones.

Kathy Persha, Broker
Nextage Advanced Realty
0 votes Thank Flag Link Thu Mar 21, 2013
Flag Fri Feb 13, 2015
My advice to you is to bid on the houses that offer protection period for owner occupant bids only. Thsoe would be mostly throu HUD, Fannie Mae and Freddie Mac. The overbidding id very common when you deal with foreclosures, and it seams like it is designed that way. I have noticed lately that many privately owned properties do not get the right attention, because people think that foreclosure is a guaranteed deal. When you buy foreclosure you have no idea what is the real condition of the house, and it usually requires more work and expenses than anticipated. With privately owned properties there are no huge bidding wars, you have the seller's disclosure statement and at least know that the house is livable. Also, one of the newer issues with foreclosed homes is the insurance. Many insurance companies raised their requirements and have to have all the utilities on and repairs done, before even binding the coverage. That is a real issue if you need insurance for closing, and cannot do the work prior because it is not your house.
And don't give up on the dream od homeownership, find a better real estate agent.
0 votes Thank Flag Link Thu Mar 21, 2013
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