Home Buying in 95630>Question Details

Worfdog, Home Buyer in Folsom, CA

Seeking to purchase

Asked by Worfdog, Folsom, CA Wed Jul 4, 2012

Im like a bunch of other people out there right now trying to buy a decent home in Folsom for 200 - 250K or less. Everything has multiple offers on the first day - I can pay cash, anyone know how i can get a scoop? Im desparately seeking housing. I am disabled, and need a single story accessable home.

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Worfdog’s answer
Hi John, what an interesting spin to the problem of what to offer in a competitive market - i had not thought of it like that - in my last situation the house would have probably appraised no higher than 220K probably less because of much unfinished work. The same house sold for 214 four months before. There was a undisclosed lein that showed up in the counter - so essentially I would have paid a minimum of10K over the asking price and had another 15K or more of work to do - with all those numbers? Is it still a "good buy" Im not sure how the appraisel process works< I know its hurting the market due to all the new regulations - appraisels are coming in low and conservative - I can tell you stories! I took a beating selling my rental because of a bad appraisel! So Im not sure if that affects the sales value of the rest of the neighborhood- John do you think the inventory situation is going to get better any time soon? I hear banks are refusing to release inventory...whats that all about? I have some thoughts but this is not the place to post them LOL
Thanks for your insight
0 votes Thank Flag Link Thu Jul 5, 2012
Cash is nice and might help a little but it does not make a seller discount all that much when they get multiple offers. My suggestion is to offer over list price, that should help. Good luck.
1 vote Thank Flag Link Wed Jul 4, 2012
Hi John, what an interesting spin to the problem of what to offer in a competitive market - i had not thought of it like that - in my last situation the house would have probably appraised no higher than 220K probably less because of much unfinished work. The same house sold for 214 four months before. There was a undisclosed lein that showed up in the counter - so essentially I would have paid a minimum of10K over the asking price and had another 15K or more of work to do - with all those numbers? Is it still a "good buy" Im not sure how the appraisel process works< I know its hurting the market due to all the new regulations - appraisels are coming in low and conservative - I can tell you stories! I took a beating selling my rental because of a bad appraisel! So Im not sure if that affects the sales value of the rest of the neighborhood- John do you think the inventory situation is going to get better any time soon? I hear banks are refusing to release inventory...whats that all about? I have some thoughts but this is not the place to post them LOL
Thanks for your insight
0 votes Thank Flag Link Thu Jul 5, 2012
Worfdog,

You say “no one wants to overpay for a home”. What does that mean? If you are one of ten potential buyers making an offer on a house, only one buyer will get the house. Did that person overpay or did the others under-offer? The price paid for that house becomes the newest comp in the neighborhood when the sale closes and buyers will then cite that price as being the correct price for the neighborhood.

When the market is rising and all of the houses are selling with multiple offers, the concept of “overpaying” takes on a very different meaning than when prices are stable or in decline. By refusing to “overpay” in a market in which we are currently in, buyers are guarantying their own failure.

This is a very challenging time for buyers. Good luck.
0 votes Thank Flag Link Wed Jul 4, 2012
Thank you everyone for your replies - In fact I am teamed with a excellent realtor. Shes been working her tail off for me. Its just so frustrating. Appreciate everyones input - I guess I already knew this but I have been an out of the box thinker my entire life and sometimes putting heads together comes up with creative solutions. Tommorow I go look at another home - so we will see what happens. And I had an offer in - Guess I was over optimistic - I suspect I was seriously outbid though - as there were other non cash offers much higher than mine that were rejected too. So its tough because no one wants to overpay for a home - at the same time I need to solve the problem. I will continue to work with my realtor professional - she has a good handle about the market and the situation.
Thanks everyone....yes, if some hears of a 'pocket' listing let me know, I will arrange through my Realtor to review the opportunity.
0 votes Thank Flag Link Wed Jul 4, 2012
You are in the same boat as a lot of buyers competing for the same property.

The best advice I have for you is to make sure you are teamed with a professional who is doing what is necessary to position you to compete. This means being brutally honest with you about your options for the specific property.

I don't recommend putting a buyer in a risky situation. I do recommend you remove as many objections from your offer as reasonable for you. The skills of you agent will help you craft the best offer.

You may have to make several offers before one sticks.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Jul 4, 2012
I would recommend getting teamed up with a realtor. We sometimes have "pocket" listings so we have a seller interested in selling but hasn't officially posted the listing on MLS or thinking outside of the box, our team has actually written to houses that fit your criteria (single family, under $250k value) that we have an interested buyer to buy their house... believe it or not, we have been successful at finding a person interested in selling that wasn't previously on the market to sell. If you are paying cash, you will have an advantage as well over other buyers looking to finance as you can close faster and the seller doesn't have the stress of having a buyer fall through due to financing. Let me know if I can help further. Good luck
0 votes Thank Flag Link Wed Jul 4, 2012
Hi Crystal,
I'm glad Ed reiterated what I've been telling you. Hang in there as we'll find you something!
DeeDee
0 votes Thank Flag Link Wed Jul 4, 2012
Worf...

It is frustrating I know because your situation is not unique at all in this market.

Basically all you can do is keep at it... you will have to just make offers over the list price and forget any kind of discount because you have cash without needing a loan.

What you want to do is be the "1st in line"... so if you offer high enough and get your offer accepted, all you are doing really is starting the "contingency" periods... you'll still have a chance to make inspections etc...and if you find something wrong you can withdraw...

Keep at it and you'll get the deal eventually...

I hope this helps...

Make it a great day...!!!
0 votes Thank Flag Link Wed Jul 4, 2012
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