I recently watched Dean's video about the lies we tell ourselves and the refresher on the 25 to 1. These sparked some motivation in me. I have been working with an agent(have put in numerous offers before-all rejected),had her send me some starter homes, filter through the list for AS IS, TLC, Vacant and major price drops.
I put in 18 offers at .65 and got a lot of rejects, one counter (which was way too high) and one nibble. The nibble, an REO 3/1 great neighborhood: Orginal asking $55,500 my offer: $36,075 assessed value of $95k, dropped the price to $175 below what my .65 figure. My agent emailed me and told me she didn't think it would last long. We wrote up the offer at my orginal figure of $36,075 cash. Well, it ended up with multiple offers and mine just came back rejected.
I found a couple of more that the numbers work and have tried to put more offers but as soon as I get the notification from my agent, she lets me know that it already has an accepted full price cash offer. People are gobbling these houses up as soon as the "dump price" is listed. Which I am not sure what it is, and am pretty sure that others are well aware of the price drop before it is listed on the MLS. There is no put a 65% offer when they are flying out at full dump price. So what to do? Do I change my offers/stragies? How do I learn what the dump price is? Do I pay that? I don't want over pay, but can't seem to compete if I am offering way to low? Any thoughts?
We have the announcements of two big employers coming to our area within the next year or two, which makes perfect sense.
In the meantime, I have been reserching on craigslist, found possible three buyers that I have to contact. Asked my REA to send me another 35 starter home list and any forclosures. So am waiting to get the next list. I found a vacant forclosure that is still in redemtion period and I wrote a letter to the homeowner trying to make contact there to see if I can make it a win/win for the both of us.
Any suggestions would be greatly appreciated.
Thanks
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