Its natural to feel some hesitation after a seller accepts your offer, after all - they are selling to you because your offer was higher than the others. It's easy to think that you are over paying.
The market in Richmond is very competitive - there are a lot of buyers pursuing opportunities there and houses regularly sell for over the list price. Paying a couple of percent over the list price is not especially aggressive.
While the house might have been on the market for a while, remember that the banks typically list a house at a higher price to begin with and reduce the list price as the listing ages. Ask your agent about the original list price of the house, you may well discover that it did not sell sooner because the original price was much higher than the price when you made your offer.
Are you getting a good deal? I bet you are paying a fraction of the price you would have paid for that house a few years ago. There is a very good likelihood that the house will be worth much more in years to come.
I suggest you talk to your agent about your concerns. He should be able to reassure you and show you market data that supports your price.... more
Bus Driver, I happen to agree with you (if that's the right word)... I think the real estate agent in that article quite frankly should be ashamed of herself. Many people think they can walk away without consequence, and most banks are wise to that too. Its harder to do the buy and burn strategy - if not impossible with most major lenders today. I would like to think it would be harder to find a real estate agent to help you with it. There are consequences when you walk away from a debt you promised to repay. Last year it was easier for people to do all sorts of "creative" things to walk away, now, not so easy. Credit will be hurt. Loans will be sent to collections. Many will be forced to contend with a years long collections action or bankruptcy. Certainly not sure of what the right answer is for many folks . . . if they have to move for their job, or if they've had a death, illness or divorce - those are unavoidable life changes. If their interest rate spiked and they haven't talked to their lender about adjusting - they should. There are non profits and there is HUD ... admittedly not much help to many but many jump to foreclose without even exploring options. As you said, its become the new fix and flip. It (along with many other factors) is destroying our communities. Real estate shouldn't have been thought of a short term investment. But for many, they gambled and won... now others, are left holding the proverbial bag. No one has a crystal ball...... more
Perhaps I misunderstood - I was thinking the 'last step'of the foreclosure process she asked about was the trustees sale 'auction'. That's the 'end of the foreclosure process... and those do require cashiers checks.
Auctions set up to sell off REO properties are quite different, I agree, and do not require quite as much 'due diligence' as a trustee's sale auction. But those auctions are just another way of marketing REO properties. I have not heard of any one getting a great 'deal' from those auctions either - just the opposite in fact.... more