This is a challenging time to be in real estate. The low inventory has pushed investors right up against regular home buyers and the bidding wars are breaking out. First time home buyers, hang on, it’s going to be a bumpy ride!
Now for some of the more sweat-equity minded buyers, if you want one of those diamonds in the rough that need more than just paint, consider finding a HUD home from the HUD Home Store. http://www.hudhomestore.com/Home/Index.aspx
You can browse the listings but you’ll need a registered agent/broker to place a bid, like me. The old system used to hold bids for weeks, now they disappear after only two weeks, so it is hard to track the price drops. However, one thing that has not changed is the rule for Owner/Occupants to make bids first, before any investors, for the first two weeks. However, be warned: the properties that are still sitting after 90 days indicates that not even the investors are interested in the property, which means MAJOR repairs or possibly a complete tear down.
A client and I just toured two HUD listed properties in Saint Charles this week, both on lovely wooded lots, both priced in the mid $40K range. Both were tear down quality. Then again, I have also seen inventory levels dreadfully low in Saint Charles. One single family home across from Pottawattomie Park, a tiny 2 bed/1bath, sold in 17 days for $200K this month. Is the market back? Is this the time to finally build that custom house on a HUD lot? You tell me!
I’ve had extremely frustrated clients put bids on numerous properties, and gotten outbid many times. However, it only takes one accepted bid to win a deal. Keep that in mind when you can’t raise your offer, perhaps it just wasn’t the right property for you at this particular time. There are many more out there, just keep looking.
In my next post, I’ll give you the secret of finding exhausted sellers who are tired of being for sale and ready to sell today just so they can move on.
Charles Rutenberg Realty