FIRST TIME HOME BUYERS COMPETING WITH INVESTMENT BUYERS IN PRINCE WILLIAM COUNTY, VIRGINIA

Wow that is a lot of cash flowing through the market.We have seen the cash investors but they are not seeing the buyers in return. SO some are having to convert to renters.

Not only are cash buyers preferred by the banks, REO properties in this price range are better investments for cash investors at today's prices than they were in 2005.

Yep, Cash is King Lenn,

At least it was for my client. I just completed one of those REO's with 38 offers. 12 were cash buyers went well into overbid and luckily for my client, we made a case for a lower amount ( after our overbid  offer was accepted)  based on an amazing inspection and detailed request and we were successful getting a lower than list price. My client thinks I did an amazing job and truth be told, we were just lucky. I suggested to the investor client not to count on that happening again. I undertsand that of the 24 conventional offers, allmost all were bid well over asking. We ended up well below asking. Who'd a thunk it? :-)

Those are startling stats Lenn. Where would you stick your nest egg?

Make each day a great day!

LENN- I see it here all the time. It is really frustrating for the first time home owners facing the deadline on the tax credit.

Lenn, these are really interesting numbers. What worries me is that investors where part of the problem and I'm not sure they are a solution.  I get worried when I see high numbers of non-owner occupied homes in one community.  But, with loans so hard to work with, I truly appreciate my cash buyers!

Lenn - similar issues here. I haven't done the stats (but should) but there are many more cash buyers now. And since some complexes will not qualify for FHA some buyers are having a tough time competing in the lower price ranges.

Jeff

Lenn - I understand the process as I've purchased for quick cash with no inspection and no contingencies in the past. First-time buyers are at a disadvantage, but those who have the guidance of a good professional, such as yourself, can usually find a deal that works.

Hi Lenn

It surprising that there are so few FHA sales.

Good luck and success.

Lou Ludwig

It is a process we have to go through as the prices start to increase we will see the cash investors back off and the traditional buyers will not have to compete with them.

Hi Lenn!  Most of our REO listings will not even consider an FHA/VA on their listings.  It really puts the first time buyer at a real disadvantage in their search for homes.  However, our FHA/VA sales are doing very well, as it is a perfect loan for first and second buyers.  Down the road 8-10 years, they will be glad they have a assumable loan then as a seller.  Most likely interest will be much higher and even though the new buyer will need to qualify for that FHA/VA loan it will be very attractive, as it was in the mid 1980's.  Buyers need to think above the list price for many homes that are REO owned that will accept a FHA/VA offer, as they usually are priced extremely well to begin with!  Your stats chart clearly shows your market loans very well.  Great post.

Chances that the $8000 credit will be extended:  Excellent, if we all call our members of congress.

Chances of another housing decline if it's not:  100%.

Only the bottom strata of the market is perking here.  The only reason for that:  the $8000 credit.

Lenn,

Jeez; you're system of doing real estate is a hell of lot more complicated than ours. Every day I learn more terms.

Great post Lenn. . right to the point. I believe short sales have a bad reputation that keeps first time home buyers for consideration and it attracts mostly investors.

By the way. .thank you for the referral and thank you for taking the time to contact me.