6 Comment

  • Seeing this just upsets me….I’ve bidded on several homes on this list and one of my offers was to 30K more than final closing according to this data, but lost out to an all cash investor. Cash is really king. Sucks current owners couldn’t wait an extra 2-3 weeks that would allow for the financing process. They walked away from extra 30k, now the house will be flipped out of my range to someone who has probably never stepped foot in the neighbord. Yes I am mad damnit!!!!

    • The sellers get a TON of pressure from their agents to accept lower bids from the all-cash buyers. It’s pretty dumb, IMO, as you’re leaving a ton of equity on the table. But I guess if you’re already selling at a huge profit, you’d rather take the convenience. And, of course, the agents want to just close and get their fee as quickly as possible.

      • justinbc

        Well, there are also other considerations such as them buying another property contingent upon the sale of the one in question. If you can guarantee a closing via cash it’s much more appealing than the wait of financing which may or may not fall through.

    • I agree. This is insane. I cannot think of hardly anyone whos time is worth $30k for one month.

      Plan ahead a bit better.

  • Yeah, I know how it goes. I was able to buy a home through the Fannie Mae Homepath program. That is a program through which foreclosed homes owned by Fannie Mae are sold preferentially to owner-occupants. For the first two weeks after listing, they only allow offers from owner-occupants who agree that the property will be their primary residence for at least one full year. If it doesn’t sell in the first 2 weeks, then they allow investors to bid.

    A couple of caveats, though:

    1. Investors try to cheat. I was originally notified that I lost out, but then was notified that the 2 top offers were both from people who Fannie Mae had determined were actually investors (one bought another property from the same agent through the same program a month before, and the other owned 30+ properties in DC).

    2. The property might be f*cked up. I had to put about $30K of work into it to make it habitable, and another $20K to make it bearable, but in the end, I ended up with a home that I otherwise wouldn’t have been able to afford for probably $100K less than an investor would have re-sold it for.

  • Thanks for posting this every month! I always enjoy picking through it.

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