patrick.net

I've also heard that bidding on pre-foreclosure (empasis on PRE-foreclosure) and foreclosure property auctions is generally something best left to the pros --especially in a shark-infested market like CA. If you're a newbie amateur, you can get your face ripped off and handed to you in a hurry.

Bank or credit union REO on the other hand might be worth investigating as this mess unwinds...

Consult your astrologer.

Once again,
I plan on doing no dickering around. The plan's still the same: A: Find home in 70-150k range in my 3 to 4 aforementioned non-bubblezones. Look it over and make sure there aren't major foundation and rot problems. Write a check to the owner/bank/ property owner. Move in. Done. No loans.
Sound crazy? well that's my plan.

hey newsfreak- we both used "Dickering" what are the chances? weird huh?

@newsfreak,

I gather that at some point in the past, you were in the unpleasant position of being a seller in the midst of picky buyers. I sympathize. However, while the "as is - no contingencies, please" approach might have worked just fine for the last 5-6 years, it will NOT be the new paradigm going forward.

Expect to see increasingly picky and emboldened buyers with "unreasonable" demands --like inspection contingencies-- become the norm for years to come.

The next seller who bases his asking price on "need/greed"-based pricing or demands that I submit a family biography, photos or feed the squirrels is going to get my biography, photo --and squirrel-- shoved right up his ass.

I'm not saying there aren't any values to be had among the "class of 03-05" crowd but for most of us it just isn't worth it. They don't have to be in pre-foreclosure to be a pain. These people HAVE to believe! At this point momentum is their only salvation. And they need for you to believe too. It may be why we're seeing listings at 810K pulled and after all of a week (without 1 single offer) they re-list at a HIGHER price! Who needs these people? It's like oops, forgot about the realtors comm., our moving expenses and our well earned vacation. Better re-list higher.

But many are in pre/foreclosure or are only 29 days from being 2 or 3 payments in arrears. It may not have been the general practice in the past but buyers may begin to ask the sellers realtor if the buyer is current. If they're not honest it's easy enough to check. I say if you're a bottom feeder the next few years will be as good as it gets. If you prefer a straight laced transaction this could be a difficult time to be a buyer (even w/falling prices) as sophisticated debtors learn to work the system.

Thanks HARM!

Forget about foreclosures, there isn't enough equity in them to buy at phase one (from the buyer) which is usually the best way to buy. Why bother to buy REO's right now, buying now will only buffer the crash. For gods sake we waited long enough for the crash to begin, why not wait for the end. So take your shoes off, kick back in that nice comfortable sofa and watch "As the market crashes" on the tube and thank god you weren't one of the poor statistics that will be taking the biggest finacial asskicking of their pitiful life!

Why bother to buy REO’s right now, buying now will only buffer the crash.

allah,

This is a "forward-looking" thread. Note the term "POST-Bubble". I agree we're only in the beginning phases of the crash and we have a loooong ride down to the bottom.

I have a thought. Bare with me, I might be off the wall, but how about this:

If the market gets anywhere near as bad as many of you think it will, and it becomes an exaggerated buyer's market, then would there be an opportunity to create some kind of buyer's aggregate?

Essentially, a reverse on the multiple bids of the past. Instead of one ASK and multiple BIDS, how about one BID and multiple ASKS.

With a little bit of cleverly designed web thisandthat, we could create a buyers auction tool. As a buyer, you would offer up a BID of what you want to pay, and then tick off a bunch of common attributes that you demand for that bid. Obvious things like school district, BR, BA, all the normal MLS listed stuff. You can be as narrow or as wide as you want.

Then sellers throw in ASKing prices, and describe their properties according to your search attributes. Of course, you'd have to visit each property, but the sellers would be trying to entice you to come to their property with everything they can fit into your demanded attributes, most obviously being price.

The most attractive part is that the way transaction custom and law works, there is nothing preventing you the buyer from being as discriminatory as you want, or selecting any ASK you want for any price, even if you choose to raise or lower it without telling other sellers.

Also, you could sit there as a buyer without an agent, just a RE attorney, and put a lot of pressure on the sell-agent or seller to give on commission in terms of price you pay. The seller will be pissed about paying commission anyway because their agent won't have done much of anything to sell the home in this scenario...the seller will have to do the active ASK offers (I doubt agents would comply).

-- OK, maybe this is fundamentally flawed, but I'd love to hear if there's anything here. And, it would require a substantial BUYER'S market to work, otherwise sellers just ignore the whole shebang.