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The housing situation in Arizona right now sucks. We have a ton of pre-foreclosure/short sales and bank owned properties on the market. However, almost all of the bank owned ones are getting 5-10 bids on them from investors, mostly with cash. This is because these homes back in 2006 or so were sold for $180k-$280k and are now hovering around $100k-$130k. I can't blame the investors for jumping back in but it's not fun trying to beat cash offers. I'm just afraid of the homes getting inflated again. We were smart a few years ago when we knew it was ridiculous to see prices rise so fast. Short sales are a pain in the rear end I've come to learn. We put in a bid last weekend and went back and forth this week with counter offers until we got what we wanted. Even though we have a signed offer sheet with the seller (which is the homeowners still), it pretty much means nothing until the bank says it's OK to sell it short. This bank takes up to 45-60 days for this happen we are told. But of course during this 2 months, they can accept other offers or change our terms at their liking. If someone else bid better, they get it. If no one bids and they like our terms, then we finally get to do our closing, 30 days later. So basically, this will be our backup plan if we can't find a non short sale home. It's costing us nothing to keep our bid on it and we aren't obligated to the home even if we are accepted by the bank. I'm hating short sales now. Oh, this is our first home buying experience. It's quite overwhelming at first, but we are starting to understand things a lot more.
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Jun 26, 2009 20:58
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| # ¿ May 21, 2024 15:42 |
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We made out pretty well using a FHA loan. The house was listed for $95k. We bid 87k with them covering 4% closing costs. FHA appraisal comes back and they value the house at 80k. Since the seller didn't want to back out and try to find another buyer and start the whole process over again, we said we would drop our closings costs to 3% if they accept 80k. Since the majority of buyers right now in AZ seem to be using FHA (besides cash investors), they pretty much had no choice but to accept ours. FHA = good for buyer, bad for seller
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Dec 11, 2009 15:05
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