Posted by Steve GA on May 23, 2000 at 20:23:45:
In my area, the market demand (buyers) greatly influences prices. What listed 5 years ago for 81k could be gotten for around 75-77k. Today in this crazy market, a home listed for 81k can’t be bought for under
90k. The feeding frenzy of buyers makes the VA repo a tough area to dominate right now.
VA Foreclosures - Posted by Walt Beasley
Posted by Walt Beasley on May 23, 2000 at 08:13:08:
For those who have done this before.
A house on my street went up for bid on the Florida VA page. Altough, new to CREI I thought the best place to invest would be on my own street. The asking price was 81k. I thought that was high, based on the comps I could find on the internet(between 84-89k). I checked yesterday, and I was shocked that the winning bid was 105k, with a net price of 97k. Now here are my questions.
Bought VA repos for about 20 years, they were seldom good prices… - Posted by David Krulac
Posted by David Krulac on May 23, 2000 at 21:30:37:
except for owner occupants or vets. the prices were almost always market but the financing was low or zero down and the financing carried the deal. occasionally there was a good price or two.
Re: VA Foreclosures - Posted by Dave T
Posted by Dave T on May 23, 2000 at 14:04:45:
A. Not necessarily. If you are planning to submit a bid on a VA foreclosure property, you must go through a realtor. Just ask the realtor for comps on the property before determining your bid price.
A. No, not usually. Depending upon the VA district office, the initial list price might reflect the current full market value of the property, adjusted for condition of the property. The broker has no incentive to inflate the price because the sales will just slow down. To make money, the broker must depend upon a good volume of sales as well. That just won’t happen if prices are not competitive with comparable properties.
On the other hand, the list price may reflect the absolute minimum price the VA is willing to accept. Check your local VA practice with a realtor that is familiar with the VA sales process. In my market area, VA/MD/DC, the VA list price is at or near full market value. I believe in the southwest part of the country (Southern CA and AZ) the VA list price is the minimum acceptable price. In this instance, a successful bidder most surely submitted a bid higher that the list price.
A. For properties under contract, the bid price is what the buyer will pay for the property. The Net to VA is what the VA will clear after selling expenses and discounting the loan.
It is not unusual in my market area for owner-occupant buyers to pay higher than list price for a property. If the property is especially desirable and the list price is considered below market, the property may go higher than the list price. I have observed that an owner-occupant buyer almost always pays more for a property than an investor is willing to pay.
Re: My VA Foreclosure experience - Posted by Lori Samson
Posted by Lori Samson on May 23, 2000 at 13:24:05:
The first house I ever bought was a VA Forclosure. I have found that they just aren’t good enough deals anymore to bother with. I do have a stradigy for you… VA’s and HUD’s are great the week of Christmas! No one ever bids on them but You! I have gotten everyone that I have ever bid on in the week of CHRISTMAS! Please, No one in the Dallas Area read this post! I want no competition! Lori