It makes me sick to look at the numbers, but I just pulled together my sales data for the year to date and it appears that I have submitted 28 offers that were not accepted on short sales at full price or higher this year alone. The potential income would have been HUGE! I knew the market was getting extremely competitive but until I pulled this data together I had not realized just how tough it is.
It is getting to the point where I am starting to dissuade non cash buyers looking at property under $300,000 from even attempting to buy. There is just to much aggressive cash out there that is making it too hard for the little guy. Only if the buyer fights me back on it and insists on making a financed purchase in that price range do I know I have a guy that stands a chance. It is also extremely important that I fully educate them on what to expect. For those of you that are in other markets and looking for a good short sale agent you can visit sites like this one http://shortsaleagentfinder.com. You really need an expert in today’s market environment.
Something home sellers are not considering is that perhaps well financed buyers are just as strong if not stronger than cash buyers in this market and especially at the low investor level price points. I say this because it is just so difficult for financed buyers that when they finally get a property in escrow that they really love, they are bound to stick with it. This is especially true if they have already been rejected a number of times on other properties. Cash buyers, on the other hand, feel like the kings of the world and are less likely to be as thankful for the “opportunity” of purchasing an investment property. Just food for thought.
The overall result for the market is positive. Prices are getting bid up and distressed sales are no longer what they used to be when you could buy them at huge discounts. Now they are going much closer to true market value, which takes a lot of pressure of traditional home sellers. It also makes the much talked about shadow inventory a little less frightening. Truth be told, outside of a massive property dump on the market, we can actually use more inventory.