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.
Karen Paytas, GRI, CMS
Real Living Kee Realty
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"
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
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.
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!
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.
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
GRI, CDPE, SFR, CIAS
Nextage Advanced Realty
And don't give up on the dream od homeownership, find a better real estate agent.