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Would You Believe Bidding Wars?

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Would You Believe Bidding Wars?
By: Myrl Jeffcoat - March 20th 2008

We’ve certainly had more than our fair share of bad news in the housing marketplace in recent months, but there may be reason for a glimmer of hope, and a new dawn breaking at last on the horizon.

More and more GreatWest GMAC Real Estate Professionals are reporting offers being written, and more buying activity than seen in awhile.

The entry-level housing arena seems to be enjoying some exuberance being fed by the CAL FHA, First Time Buyer program.

One real estate agent reported they had been working with a buyer for a few weeks, using this type of financing for a home in the low $200,000 range.  Many homes in nice areas available in that price-range - are often bank owned properties.

The rule of thumb with bank owned homes is they are sold “As Is.”  The banks will usually not make repairs.  But if a buyer uses CAL FHA financing it will be essential to find a home, which is in good repair, as CAL FHA financing mandates it.  Finding that a property is in need of a new roof, or other major repair will often be a deal killer.

And if the home is in excellent condition, and in a nice area, with a good price, it will not be uncommon to have multiple offers, from those hoping to procure the property.

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Should you find that you are in a multiple offer situation on a property you wish to buy, and is owned by a bank, or even a regular home-owning seller for that matter, there are guidelines you can often expect.

If the bank finds they have received multiple offers on a property they own, they may reject offers outright, which are not acceptable to them.  Among any offers still left in the game, the bank may counter back on all - addressing that the property is in a “multiple offer” state; and, that all potential buyers, should then counter, amend, or provide their “highest and best” offer back to them.  Hence, a “bidding war” can ensue. Should this occur to you as a buyer, you will need to assess how much the home is worth to you, and how much you can afford, before responding.

Knowing this type of activity has actually been going on in the last few weeks, allows us to begin wrapping our arms around the idea that we may in fact be seeing the very first glimpses of a new dawn for housing.

If you are interested in obtaining more information about CAL FHA First Time Buyer programs, or any other financing available for your home buying experience, please contact one of our many friendly and very qualified GreatWest GMAC Real Estate Professionals. 


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We will also be happy to assist you in locating a home to purchase using the CAL FHA lending program.

We look forward to hearing from you!

 

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If you are currently considering selling or marketing a home, please feel free to call or contact me. I can provide a free, no-obligation Comparative Market Analysis of your property. . .Or if you are thinking of buying a home, I would be pleased to be given the opportunity to sit and explore with you the opportunities that await homebuyers at the present time.

 


Service is always
a priority

Myrl Jeffcoat

Local Realtor since 1981

Phone: 916.635.0420

E-Mail Myrl

Sacramento - El Dorado -  Placer Counties
License# 00827565

Date: March 20th 2008