Question Details

Hollie Felts…, Real Estate Pro in Walnut Creek, CA

Don't you think we should ask Congress to invoke rules favoring owner-occupant purchase contracts for the 1st 45 days of a listing?

Asked by Hollie Felts-Howell, Walnut Creek, CA Tue Nov 20, 2012

In a recent analysis of the Central Contra Costa County, California market, all cash contracts are representing over 1/2 the transactions. Angry people have come into Open Houses and accused me of being corrupt because no matter how high they bid their contracts are not accepted. I agree that this is wrong & we need Congress to do something about it! Tax payer bail-out money should fuel owner-occupant purchase because it fulfills the American Dream and they drive more economy. This will further assist in economic recovery. We should not squander the opportunity and let foreign investors squeeze us out of buying American property! Join me in asking Congress to only pay 85 cents on the dollar in bail-out monies if a bank approves a short sale contract which is not for an owner-occupant in the first 45 days on the market.

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In the segment of the market I reviewed for one client - condo in Walnut Creek under $300K, 48 transactions out of 70 were all cash. My client bid 15% over list price and was outbid by all cash. The problem is that despite the fact that I have 14 years underwriting experience, I am doing better than the average realtor in getting 1 in 4 contracts accepted when the client needs financing. A lot of agents are writing 15 contracts before they get one accepted. It is always the cash deals that are squeezing them out. We verify funds for down payment & submit that with the offer in this market. So, those who would lie about all cash and not have the wherewith all are ferreted out. So, it is not as simple as the last commentor in another marketplace would have you think! They must be representing a lot of the foreign investors squeezing out Joe American first time homebuyers. We are getting 20-30 offers on every listing.
0 votes Thank Flag Link Wed Nov 21, 2012
Absolutely NOT!
You are right, nearly half of all purchase AT ALL PRICE POINTS are cash!
Even here in Florida that is an incredible reality.

Adjacent to your OPEN HOUSE sign should be a companion piece that reads,

"THIS HOME IS FOR SALE - NOT ON SALE"
Any Questions? Ask Hollie, she's inside.

Too many mug-womp buyers are now face to face with an aggressive market where the seller now has options and the ability to choose the buyer most beneficial to them. It is not longer a buyers market.

There is currently a early purchase opportunity, that excludes non-resident owner buyers. These also get bid above most buyers expectations. The reality is, these buyers should have bought last year....just like we told them and they didn't believe.

If you have folks coming into your open house, you need to communicate that if they want to win they need to have a strategy implemented through a professional. Then smile.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Wed Nov 21, 2012
Hollie;
So you're saying that just under 1/2 the transactions are being financed? If so, that doesn't seem to be an unfair ratio.
If it ain't broke, don't fix it.
An O.O. has almost 2 weeks....that's enough time.
0 votes Thank Flag Link Wed Nov 21, 2012
It is broken if people bidding the highest dollar amount are not getting their contract accepted because they have financing. The guy that came into the Open House was yelling because he had bid the most on the last 2 homes he had bid on and still was not getting into contract. I suggested that I had a higher success rate than his experience was providing him. But, there is something wrong with a picture where our tax dollars are encouraging the banks to take a lower offer than true market value. When has this paradigm occurred before?
Flag Wed Nov 21, 2012
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