Jay Butler, director of the Realty Studies program at Arizona State University, concurs with this view. “This market is about as abnormal as the hypermarket that we came out of a few years ago,” said Butler. Experts say that the bidding wars will impede stabilization of the housing market.  Investors are knee deep into the bidding war, knowing some of the ingredients needed to win the bid.  The two main ingredients?  Cash with no contingencies.  They pay with cash, prefer to close within 2 weeks, have tenants available if the property will be a rental or a rehab crew available if the property needs work.   They ask for very little with the offer to purchase.

If you are interested in purchasing foreclosures.  Some aren’t for the newbie foreclosure buyer.  We had one foreclosure listed by 3pm with an accepted offer from the bank by 7pm that evening.  Buyers have to move fast, have funding available or verifiable and understand bank addendums.  Bank addendums often trump the standard offer to purchase contract, so read carefully before signing.

If you are a new buyer interested in reading and understanding some of the required documentation needed to be signed so that you can determine if buying a foreclosure is for you, give us a call at (704) 559-5988 X5.

Posted in Blog Posts | Comments Off