Okay, here's the deal. I am (perhaps foolishly) trying to buy a house (or townhouse) this summer. The only properties in my price range (or rather within bidding distance of my price range) are REO and short sales. In the past week, however, 2 of these have bumped their list prices up! from just below $300k up to near $320k. WTF? Haven't they gotten the memo? Or given that these are both short sales, has their bank forced them to move up their price by either reaching some agreement or by refusing previous offers?
It's very discouraging. Especially since I can't go above $240k this year based on needing a 20% downpayment in a declining market. (well and all of irvine renters nifty calculations on rent vs own combined with ginnae mae's calculator and assuming a potential another 10% loss, (at 240 these are already under rental equivalent for the area at a GRM of 120)
Basically should I eliminate from my search anything that's not REO? (or "long term" owners, i.e. pre 2000)
It's very discouraging. Especially since I can't go above $240k this year based on needing a 20% downpayment in a declining market. (well and all of irvine renters nifty calculations on rent vs own combined with ginnae mae's calculator and assuming a potential another 10% loss, (at 240 these are already under rental equivalent for the area at a GRM of 120)
Basically should I eliminate from my search anything that's not REO? (or "long term" owners, i.e. pre 2000)
