Any one have buying from Freddie experience. They are so overpriced and refuse to budge on all cash. 2 counters, I'm warn out and 18

Asked by Abvincent1, Phoenix, AZ Fri Oct 28, 2011

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12
Investor X, , Gilbert, AZ
Fri Oct 28, 2011
Buying from Freddie Shmeddy

Stop low-balling. You’re NOT dealing with one person. You’re dealing with a panel of people. Think of dealing with robots. Electronic people. Once a month at the bank about 7 people enter an office room and look at 100 foreclosed properties in 30 minutes. Your offer/bid is looked at for 30 seconds then tossed into another pile of papers. There are no negotiations with these robots. Refuse to budge on all cash offers because you are obviously low-balling. Why concentrate on this property when there are many better properties here in Phoenix.

If the home you are interested in is overpriced, why are you bidding on it? And the appraisal might be way off to the listing price. So why so excited about buying an over priced home. I don’t get it. You won’t qualify for the loan.

Move on stop wasting time…..
2 votes
Abvincent1, Home Buyer, Phoenix, AZ
Fri Oct 28, 2011
Just so most know, I am not asking for a discount, the highest price home nearby is 35K less then what I am trying to buy (my offer, not their ask price). I have been home shopping for months, and what I find is they ask these ridiculous prices, then 3, 6 months later you see them drop the price 30K. I've offered them a higher valuation based on the appraisal, and they are giving 3K. I am not slogging around "cash" because I think it buys me leverage, I am saying that eliminates the other lending loophole.

Regardless to any one reading this post, I highly recommend you completely sidestep the Freddie properties. The fallacy of "bidding wars" on every property to me is no different from them telling you how strong the housing market was at the top. Over-priced nets no buyers. Hence, why you have single family homes on the market here for well over a year with no offers. As a buyer, I can tell you it simply is not worth the hassle.

Thanks again to every one who responded, I appreciate it very much.
1 vote
Brad Bergami…, Agent, Prescott, AZ
Fri Oct 28, 2011
Freddie properties sell right? Someone buys them, just not you. If they where overpriced they would not sell.
Stop playing the victim and offer more for the properties or don't.
Move on..
#1 rule in real estate..
Buyers don't have to buy.
Sellers don't have to sell.
Go get another home that is not "so overpriced"
Sometimes you just get a asset manager that will not move on price..
Good luck out there.
Brad
1 vote
Lori Williams, Agent, Charlotte, NC
Fri Oct 28, 2011
It really depends on the person handling the case. Just keep trying! Those sales do happen.
1 vote
Investor X, , Gilbert, AZ
Mon Oct 31, 2011
Abvincent1;

Shoot me an e-mail. I’m not a realtor. I’m not a mortgage guy. I’m an investor. You have a lot to learn about the Phoenix market. I can teach you anything you want to know. I can tell you where to buy. Where not to buy. I can explain techniques and avoid problems. Example: Freddie, Fannie, HUD and anything else.

You’re doing this all wrong.

Mike
MikeShanley212@cox.net
0 votes
Fred Shocklie, Agent, Peoria, AZ
Fri Oct 28, 2011
If you are saying the property is overpriced due the condition of the property, then you may need a licensed contractor to explain any code violations and required improvements, with pictures and a written bid to correct the code issues and repairs needed to bring the property up to market value. There is a difference between outdated and not able to be lived in. The investor will only drop the price if you can show them the property is hazardous in some way and could be a liability to them.
Web Reference:  http://www.morecchoices.net
0 votes
Doug McVinua, Agent, Gilbert, AZ
Fri Oct 28, 2011
Buyers and Sellers have choices, if you can't get them to agree to what you believe is the correct answer then move on.

You don't need to buy an overpriced home.

I will question the rational based on square footage, a real appraisal does not utilize price per square foot as a method of valuation.

What are the real comps? What are the differences? Adjust and determine the real value, not price per square foot.

Price per square foot may be some general indicator but don't take it too far in the process.
Web Reference:  http://www.McVinua.com
0 votes
Richard Snapp, Agent, Glendale, AZ
Fri Oct 28, 2011
Abvincent1 - I have been a co-listing agent for Freddie Mac for several years. Please feel free to call me to discuss your experiences with Freddie Mac. Rosanne, Prestige Realty 602-309-1658
0 votes
Abvincent1, Home Buyer, Phoenix, AZ
Fri Oct 28, 2011
We are only bidder, the comps are $55 sq ft, and the house needs work. We have offered all cash, rapid closing, and $62. There are no other offers. I have countered twice, and they have too. I am just about to give up, I know they will sell that house at my offer price in a matter of months. My agent even sent all the comps and pleaded with the listing agent to forward and consider them. They are hopeless. I appreciate all the responses.
0 votes
Christy Walk…, Agent, Phoenix, AZ
Fri Oct 28, 2011
Their response can also depend on the current market. They have not been releasing a lot of properties lately and the inventory in Phoenix is at a 3 month supply which is creating a lot of buyer competition. If they know they can get multiple offers or a higher price there is no reason for them to negotiate a lower price. Keep trying and work with your agent to present a reasonable offer. Properties are already discounted so it's not just about getting a "deal" anymore. It's about creating a win/win between the buyer and seller and that requires a meeting of the minds.
0 votes
Bill Parker,…, , Scottsdale, AZ
Fri Oct 28, 2011
Hello Abvincent1:

From a lender's perspective, I have no idea why Freddie seems to be so much tougher than Fannie. I have done a number of Fannie deals with no problems (had a $70,000 purchase; the appraisal came back at $60,000--that is about a 15% reduction--and they approved it right away).

Not that you asked, but it carries over to their handling of HARP refinances--many lenders will do high combined loan-to-values (amount owed on a first and second mortgage divided by curent value) with Fannie Mae's program, but relatively hard to find those who will do so with Freddie.

It will be interesting to see what others have to say...
0 votes
Sean Aske, Agent, Gilbert, AZ
Fri Oct 28, 2011
I am actually working with a client in Phoenix on one of these deals right now and it is an overvalued home. There are some options to consider so be sure to ask your agent what your options are. I know it doesn't make a lot of sense and can cause a lot of frustration.
0 votes
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