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Howard Harris Real Estate Expert

Mortgage Rates



Investor Offers Can Be Rejected During The “15 Day 1st Look” Time Period

Mar 24

filed under: Buying A Home, Foreclosures & Short Sales, Real Estate

Resized-Not-AllowedSo what’s going on out there, some of my investor clients are getting very frustrated. We have all heard it “cash is king” when it comes to buying real estate, but right now an investor that has cash may not make any difference on new Fannie Mae or Freddie Mac properties that come on the market. What are designated as “1st Look” properties are persona non grata for investors making and getting an offer accepted within the first 15 days that the property is on the market. Bottom line, investors are not necessarily welcome, as they said in the 1948 film with Humphrey Bogart “we don’t care about no stinkin cash”, OK it was badges, yeah yeah yeah. .

Often there are multiple offers on these properties by first time home buyers hoping to get a good deal without competing with cash investors. That said an investor can still submit an offer during this time period. The offer will be rejected by the seller, but will be resubmitted after the fifteen day period expires for the sellers consideration. Yes the seller would like to see owner occupants get these properties but sometimes their financing can be shaky or the offer does not meet the sellers bottom line or their guidelines. So it is still very feasible for an investor to still end up purchasing the property once the 15 day period expires.

Many of these properties are in Neighborhood Stabilization areas. These areas are trying to keep investors out of the neighborhood. Investors are known to buy lower end priced properties and rent them out hurting the value of other properties in the neighborhood, or if they can’t get them rented they can sit there vacant. Besides Fannie Mae and Freddie Mac foreclosure properties, there are Neighborhood Stabilization areas where newly constructed homes are being marketed for very low attractive prices. Again they are looking for buyers that will occupy the property as their principal place of residence. Sorry its a big NO to investors.

My feelings are that this is a good thing. It’s good for the neighborhoods and its good for first time home buyers or even retirees. It may not be great for the investor, but with 33% of our inventory being purchased for cash by investors, there is obviously enough inventory to go around for everyone.

To receive or find out more about these “1st Look” properties contact us and we will be happy to answer any questions you may have or notify you when any of these new listings that come on the market.

Written by Howard Harris