No More Steals ... Just Good Deals

By
Real Estate Agent with Warren Schutt Real Estate REB.0612156

 

Dear Investors,

YES, The Market is Really Changing!

I work with many investors and they have been aggressively bidding on low end condominiums with the goal of upgrading and renting them out. Up until now, the strategy has been working, as the offers are cash, without contingencies. Of course we have been at the mercy of the bank's decisions, but in a majority of the cases the banks have agreed or at least countered. But that was the last 18 months.

Times have changed, this strategy is no longer working. The last 9 offers I presented have been met with additional offers on the table. Now it's a bidding war. Last week, the realtor for one unit came back 3 times asking for the highest and best. In reality it was an auction and the property sold will sell for well over asking price.

So investors beware, the time for slipping in and stealing investment condos has come to an end. It's time to come in prepared to offer your highest and best and be happy that you are getting a good deal with great cash flow. The times have changed. No more steals ... just good deals.

Warren Schutt
RE/MAX Unlimited Real Estate
Serving Greater Danbury, CT
www.homesforsale-CT.com

 

Comments (4)

Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

Hi Warren,  Indeed things are changing but there are opportunities out there.  Hope you have a busy spring.

Mar 24, 2013 05:40 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Good morning Warren, I doubt that any investors ever stole any of these homes, I have bought many foreclosures and generally they are worth what we pay for them, after a bank gets ahold of them the level of neglect leads to a need for major repairs.   Those new investors who are bidding right now are just setting themselves up for some major losses, or possibly the next foreclosure sale.

Mar 24, 2013 06:08 AM
Warren Schutt
Warren Schutt Real Estate - Danbury, CT
Helping People with Their Moves for over 40 Years

I understand your sentiments about stealing homes. These are condominium units that are selling for prices ranging from $50,000 - $80,000. With rents in the $1,200 / month range, the cash floor for a cash investor is better than 10%.  The short sales in this area are actually sold in surprisingly good condition. Even if an investor needed to spend $10,000 to upgrade a foreclosure, it still works out.  These units are selling for 30-40% of their mid 2000's values, so the prospect of some appreciation in the future exists.

Mar 25, 2013 01:52 AM
Adam Malachi
A 2 Z Realty LLC - Castle Rock, CO
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

Great post! indee thing are changing for the better, I think the housing market did correct it self.

Thanks for sharing.

Mar 27, 2013 01:06 PM