Banks play games and investors mess up market

by Tom on August 24, 2009

Hello, my wife and I have been married for 3.5 years, we recently decided to buy a house because our first child will be born in Jan. 2010.

We are cash buyers with very limited budget, we’re looking for fixer uppers and bank owned properties. We found 2 houses that we were very interested in, we were about to submit offers and was told both houses were bought by investors. So we moved on and found another house which is bank owned, we submitted an offer with full asking price in cash. The agent then forwarded the email from the bank said that our offer was not accepted, they were in negotiation with another buyer, but they would let us know if that offer didn’t work out.

We didn’t hear anything back and 3 days later we saw this house was back on the market with a new listing price $4,400 lower than what we offered which was their original asking price. We called the agent and found out the offer which was in negotiation fell through and instead of informing us like what they promised, they decided to put the house back on market with lower price to hopefully attract more higher offers. We then resubmitted our offer and were told by listing agent that the bank is asking for $10,000 more than what they listed, we asked why didn’t the bank list the house with the price they’re hoping to get instead of playing games like this, we would of known that it was not in our budget range and we would of walked away instead of waiting and hoping our offer would get through, in the mean time we’re losing chances on other houses on the market.

We have recently met another guy during our house search who was in the same situation as us, found a home and was told by bank to pay $5,000 more. We saw a sign on side of road said there was a house for sale, we went to look at the house and noticed it was on market a month ago, the owner is an investor, bought it and didn’t do anything but put it back on market for $10k more, we don’t understand how these investors are allowed to flip a house within such a short period of time after purchase without doing any improvement to the property.

So after spending hundreds on gas and lost 4 homes we’re still in search of a house, we have no idea what is the real price the bank is asking for on a property, all the investors are eating up these cheap houses which generates a huge competition that made it so difficult for real home buyers like us, of course banks mind playing games doesn’t help either.

This post was submitted by Tom.

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