We have all seen the low asking prices for listed properties that are Short Sells or Auction homes. Is this the best way to purchase a home? Well, it could be. More times than not you will over pay for properties sold in this fashion.
Most people looking for what is perceived as a “great deal” often over pay for it. It is human nature to want something and to over pay for anything if we get emotion involved in our decision making. Think about it, the home that you want is about to go on the auction block and you bid on the property only to find out that someone else wants the home too. And the bidding run up is on. I would have to think everyone has bought something in their lives and later found out that they over paid. This is what happens more times than not as the auctioneer has a property on the block.
In regards to short sells these are proving to be silent auctions. I have seen properties sell for as much as $90,000 over the asking price with the buyer paying all of the closing cost. Most people that are looking for a short sell property to purchase will discover this over offer price bidding. The average person looking to purchase a short sell property will make offers on roughly 20 properties before they actually get an accepted offer on a property. This is because it is hard to except the fact that you have to offer more than the asking price, in most cases, in order to get a home.
Main Stream Media still does not report this correctly. I often watch the morning news while getting ready for work and it is very disappointing to continually hear tabloid stuff.
- Why have the banks not started offering HOPE loan program?
- Why have the banks not fully integrated the HARP loan program?
- Why did we bailout banks that did bad business?
- Why don’t banks have to disclose problems with the short sell properties that they are selling?
- Why is it short sell homes sell in a silent auction format?
- Our Media seems to like to report on the Obama’s date nights.
- Does anyone ask why the Obama’s are going on “date night” and taking the company car?
- Why hasn’t Barney Frank and/or Nancy Pelosi been thrown out of office?
- Does any journalist have what it takes to ask Obama, Frank or Pelosi why the HARP or HOPE loan programs have not been fully interrogated?
We have real problems still yet to come in California in regards to real estate values. California is still considered a declining market by the Lenders which means you get hit with an additional cost when you obtain a mortgage. As the State Government is finally left with facing the real possibility of stopping wasted spending we are sure to have to deal with higher taxes even in this time of need. California is dealing with a mass exit us of business and without work the people with soon follow. Simple supply and demand along with limited finance options and lack of gainful employment will only drive down prices even more if Sacramento can not truly balance our budget.
With of DMV fees set to double even I am considering relocating to another state to reduce my taxes. As a native Californian it is difficult for me to say such a thing but look at what we are faced with. Currently even before I get out of bed I pay 27 different taxes with the real possibility that the number of taxes paid will increase or go up. Taxes are out pacing income by three times and set to even increase. This is unbelievable! I am neither a Democrat nor a Republican but I can surely understand why the country wide Tea Parties are on going. I would bet that most people think as I do and I believe the song says it best, Clowns to the left of me, jokers to the right, here I am, stuck in the middle again.