How’s the Market?
I get this question all the time when I tell people what I do. They are surprised when I tell them that it is very good right now. In fact, I am busier than I have ever been. The volume of foreclosed properties has made this an amazing buyer’s market.
And I am not the only agent busy. Just about every investment property we are looking at these days has multiples offers on it. In fact, a customer of mine made a cash offer the 1st day a property was on the market for 40% above list (about $10k). We quickly were told that they were in a multiple offer situation and they asked for highest and best. We found out 2 days later that we were not the highest bidder.
It turns out there were 24 offers on this property and there were several more they turned away. The listing agent did not tell me the winning bid, but described it as “ridiculously high”. Low ball offers on Bank owned properties are no longer the norm. Over asking price is now becoming the norm. As the banks want to dump the REO properties, they put them on the market almost too low. That coupled with the glut of investors is making for stiff competition.
Are you searching for investment properties on your own and running into similar situations?
I am amazed by the competition out there for these REO’s. The unfortunate thing is it’s driving prices up for all investors.