Late last year, I started buying foreclosures for investments. These properties were in terrible shape and not highly sought after. I submitted several offers through an agent I trusted and have worked in the past. Out of 7 offers, I got only one accepted. Some had other offers and some did not. Rather than try and figure why some of my offers were not accepted, I just moved on.
I belong a local invesment association and we meet regularly. We have several hundred local investors and we meet to discuss our real estate experiences. I brought my recent offers and how I was unsuccessful with a number of my offers. Turns out that another investor whom I know quite well bought two of them. Turns out he was contacted directly by the listing agent. Also he was told how much to offer. On at least one of those homes he closed, I was in first and his offer was not in for another 36 hours. We both offered cash and the same amount.
What should have happened in this instance all things being the same, we should have been notified of identical offers and asked to counter.
I am not saying your running into this scenario, but the point you should take away from this is the listing agent is actively seeking buers to represent both sides of the transaction. Take it to the source, hire a good home inspector, and good luck!
Anyhow, we have had success! I hope that it holds up through the paperwork.
Thanks for all your answers.
Meanwhile...there are still plenty of foreclosure properties available, and both FNMA (Fannie Mae) and FHLMC (Freddie Mac) have well worked out systems to get their repossessed homes sold. Your Realtor should be able to show you what they have available. I have clients who are in escrow to buy a FNMA property, and the bank has been very reasonable to deal with. Many of these properties are selling at prices that more than justify the repairs they need, giving the buyers instant equity as soon as they get the homes.
You might also consider not restricting your search to just foreclosures. All the sellers are competing in the same market, and the foreclosures and short sales are driving the prices down for anyone who needs to sell now. There are lots of vacant homes available whose owners need their properties sold ASAP, and they've had to lower their prices to compete.
P.S. I am not speaking about short sale properties.