The last house I bought at a trustee’s sale was November 22nd, 2011. The last REO I purchased was December 20th, 2011.
It’s not from a lack of effort.
The last week of February and the first two weeks of March I bid daily, on as many as 6-8 houses. The closest I came on one property was $11,000 short of the winning bid. Needless to say, it’s silly season down at the courthouse steps.
The offers I’ve written on bank owned properties on the multiple listing service are being countered with “highest and best” language from the listing agent. With less than 12,000 single-family homes available on the Arizona Regional Multiple Listing Service the greater-Phoenix housing market has become a seller’s dream.
Michael Orr with Cromford Report released this startling fact yesterday – home prices here are up 8.68% the last 30 days. Not the last 3 months, or the last year – the last 30 days!
However, since late last fall I’ve bought 4 short sale properties and have a 5th under contract to buy next week. With another 15-20 in the negotiation stage I’m confident we’ll close at least 10 by the beginning of summer.
I believe it’s a perfect storm for fix and flip investors like me to gobble up what the retail buying public doesn’t want to digest – short sales.
There’s also enormous political pressure on the banks to execute short sales instead of foreclosure. It’s less expensive AND less harmful for everyone involved. The trick for us fix and flip investors is to have multiple offers out at all times.
I suggest you build a team of Realtors that are constantly scouring the multiple listing service for possible deals. If you are serious, have cash, and can make decisions quickly there will be no shortage of agents willing to work with you. But, you must make the situation a win-win.
If a Realtor finds a deal for me on the MLS they get to write the offer AND relist the property when the rehab is complete. I also respond within 24 hours to any prospective deals sent my way.
For more on finding short sale diamonds in the rough check out this video: