Victoriairic…, Other/Just Looking in Cave Creek, AZ

U.S. citizens should have first options on these homes. We made on offers on 3 different homes but lost them due to "cash sales"

Asked by Victoriairiccard, Cave Creek, AZ Wed Nov 16, 2011

Am I the only one who feels this way? Just an opinion.

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11
Don Tepper, Agent, Burke, VA
Wed Nov 16, 2011
What makes you think that the cash sales weren't to U.S. citizens? Plenty of U.S. citizens are buying with all cash.

Beyond that, though, why should U.S. citizens have the first options on those homes? I can't think of any. Let's suppose you're a seller. You put your property on the market for $200,000. You receive an all-cash offer from a U.S. citizen for $195,000. You receive an all-cash offer from a non-citizen for $196,000. You receive an offer from a U.S. citizen for $185,000, FHA financing, with you paying 3% of the closing costs. Which would you take? Probably one of the cash offers.

Let's extend the scenario. Suppose Congress passes a law saying that a U.S. seller must give preference to a U.S. buyer if the U.S. buyer's offer is within 10% of the best non-U.S. buyer offer. So if a non-citizen offers $196,000, you'd be required to accept any U.S. buyer's offer if it's over $176,400. How would you like it, being forced to accept a weak offer at $185,000 (or less) and not being allowed to take a stronger offer at $196,000?

Let's extend the scenario. It's not your house; it's your neighbor's. Your neighbor is forced to accept the lower offer from a U.S. citizen, not the higher offer from a non-citizen. Now, when you're interested in selling, the comps are in the range of $185,000 . . . because that's what your neighbors were forced to sell for. If the best offer had prevailed, the comps would come in at $196,000. How would you feel about being stuck with low comps?

So, no. I don't agree that U.S. citizens should have the first option on homes.
1 vote
Brad Bergami…, Agent, Prescott, AZ
Wed Nov 16, 2011
Interesting take.. You think only non-US persons have cash?
What does that say about the your opinion of US Citizens.
Grow-up. You can solve your own problem.. If your getting beat on an offer make your offer higher. Simple math..if the seller can make more they will. If you don't have money to close your own loan (seller concessions) you will get beat. Save up, get serious, start making sure your offer looks not just good for the seller but great.
Best of luck to you..
Brad
Web Reference:  http://prescottlifestyle.com
1 vote
Laura A Berg…, Renter, Las Vegas, NV
Fri Oct 12, 2012
No...you are NOT the only individual who shares this opinion. Your question - asked in all sincerity - goes much deeper and considers alot more issues than a" real estate agent commission." But Mr. Tepper and some of the others who have answered your queston have given you a typical and rather defensive "realtor" answer. One that primarily takes into consideration thier potential commission and does not really address your question, nor the problem - the reality of this corrupt market. I know....I used to be a realtor and a mortgage/finance professional. And, I know....this response will get hammered - largely because beneath all the usual BS....its the truth.

Good luck to you. Research everything that anyone trys to sell you - or tell you, believe no one and if it sounds too good to be true, OR.... if selling our country and all its assets - to corporations or individuals who do not live here or have citizenship here - if that does not set well with you......follow your gut.

Now, set back and read the angry, liberal spin....this should be interesting. But thank you for the question. It should be addressed truthfully and without prejudice (reversed or othewise).

Good day!
0 votes
Spirit Messi…, Agent, Tucson, AZ
Thu Nov 17, 2011
What would their citizen ship matter on a "cash sale"? There are a lot of investors buying homes. If you are getting frustrated in not receiving an accepted offer, you may want to offer more, view them as soon as they hit the market, and take steps in that direction. It is a free market, the house is worth whatever someone is willing to pay & in this market, what it appraises for.
0 votes
Victoriairic…, , Cave Creek, AZ
Wed Nov 16, 2011
Whoa, calm down! You're assuming my offers were low. Fact is, I never actually had a chance to submit paperwork which my realtor immediately completed during our showings. I should have been more specific. Seems some of you have been offended and I apologize to you.
0 votes
Bill Parker,…, , Scottsdale, AZ
Wed Nov 16, 2011
I am sure you are not the only one who feels this way, but I would be interested in knowing why you do.

Putting restrictions and tariffs on free trade has never helped any country's economy, in fact it has quite the opposite effect. Capitalism calls for open markets and let the best rise to the top. (Not to mention, "cash offer" does not mean "them other guys").

Just my opinion. Bill.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Nov 16, 2011
Donald, excellent point regarding inventory in your area. Here in my Florida area we are seeing a 6 month inventory.
Victoria, there is more to an offer than cash. Other contingencies, such as inspection waiver or close in 10 days have a REAL influence on the value of an offer. It is very hard to compete with these offers if you are going with FHA financing.

However, as I have experienced, and Donald shared, be persistent, you will find the house that is right for you and your offer will be accepted by the seller. Don't give up.

I don't know your situation, but you may be able to tip the scales in your favor by looking closely as HUD Foreclosures. These properties require a specified period where only end users or non-profits, can submit purchase offers.

Best of success in finding your new home.
Annette Lawrence
ReMax Realtec Group
Palm Harbor, Fl
0 votes
Jessica Sene…, Agent, Litchfield Park, AZ
Wed Nov 16, 2011
Donald you are absolutely correct! Perfect answer. Thanks for posting.
0 votes
Donald Keys, Agent, Phoenix, AZ
Wed Nov 16, 2011
Also make sure your REALTOR calls the listing agent and asks questions before submitting your offer. Finding out information ahead of time can help structure your offer before submitting.

As for being quick, I personally can write offers and submit them right there at the home while my client looks around within 15 to 20 minutes. I am 100% mobile and often am able to submit offers before others. Make sure your REALTOR is 100% tech savvy.

You are not alone, on average it takes 5 to 7 contracts submitted to get a home. The "NEWS MEDIA" and press is not reporting we have a HOME SHORTAGE in certain areas and price ranges in the Phoenix Metro Area. This is all based on SUPPLY vs. DEMAND. We only have about 2 to 2 1/2 months inventory and VERY HIGH DEMAND for homes.

For example, looking at the MLS this morning, there are 233 homes actively for sale in Cave Creek, and 133 under contract (Pending waiting to close) and 71 homes closed in the previous 30 days. As you can see DEMAND IS HIGH while supply is LOW.

A seller is going to choose CASH most of the time. Keep trying, don't give up. You will find a home within a few months. As for anyone else reading this, please get the word out, REALTORS are working harder than ever to help buyers find a home, but there is a SHORTAGE OF HOMES in the Phoenix area. It will help people get off the fence and buy a home at a rare time in housing history (Extremely low prices and Extremely low interest rates). My prediction: Housing will never be more affordable (prices and interest rates) than right now until the 2012 election (For the next year).

I hope this helps.

Donald Keys
Web Reference:  http://www.DonaldKeys.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Nov 16, 2011
Not all cash buyers are from out of the country, there is a huge amount of buyers right here from the USA that are paying cash for properties. More than 2/3 of teh sales are cash right now. All cash buyers are not even investors. You have older people who owe nothing on their homes that are selling up here in the North and they take that cash south and can by 2,3, 5 and 10 times more the house for the money and pay cash. As a buyer, if you need a mortgage , you have to increase your odds of getting your offer accepte dby being preapproved, be will to close within 30 days and do not put in any contingincies other than your mortgage. You need to get into teh house early before they hit the MLs so when it does, you can have your offer ready. Having a great agent will help with that
Web Reference:  http://www.ScottSellsNH.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Nov 16, 2011
Not all cash buyers are from out of the country, there is a huge amount of buyers right here from the USA that are paying cash for properties. More than 2/3 of teh sales are cash right now. All cash buyers are not even investors. You have older people who owe nothing on their homes that are selling up here in the North and they take that cash south and can by 2,3, 5 and 10 times more the house for the money and pay cash. As a buyer, if you need a mortgage , you have to increase your odds of getting your offer accepte dby being preapproved, be will to close within 30 days and do not put in any contingincies other than your mortgage. You need to get into teh house early before they hit the MLs so when it does, you can have your offer ready. Having a great agent will help with that
Web Reference:  http://www.ScottSellsNH.com
0 votes
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