I was fortunate to have buyers with all cash, but that is not the norm. Most of my buyers are FHA or conventional. But even with all cash, my one buyer had to make 4 offers before he actually got a winning bid in. This was 10K over list price!!! He had sold his home when prices sky rocketed and then rented till this year. Another is cashing out their stocks to buy a second home. Is the what everyone else is seeing?
With so many cash offers I am curious as to where the cash is coming from. And my FHA buyers want to know when they will have a decent shot at making an acceptable offer. Since offer order of preferences is 1. CASH 2. Conventional 3. FHA. I have noticed an increse in Corporate owned homes on the market that do not qualify for FHA because of the 90 day "FLIP" rule.
So flippers are back in the market. They seem to be purchasing at the Trustee Sales for all cash. It has helped to raise prices here or at least started to bottom out the market. Another false market of "Get Rich Quick" scenario? Did I miss some info commercial promising over night millionaire status? With December comes the last chance for first time buyers to get that tax credit, but they can't purchase the flippers homes! Most have made multiple offers only to be rejected because an all cash buyer prevailed once again.
Is FHA considering changing the anti FLIP rule? At least when it is back on the market it is clean and turn key!
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