I ended up calling her to say I was firm on my price and she said I should wait for a price drop. Now this girl has not offered me any advice until now. She never told me about this 5% rule when I made the other offer and even when they emailed asking for my 'highest and best'. She started telling me that the banks, after all the fees and taxes and other losses, would not go for a small offer. I wanted to say, 'Yeah...fucking banks!" However, I ended up saying that the banks would rather these houses rot into the ground instead of letting one go for cheap. I told her I lost 40% on a property in 2010 and no one seems concerned about that loss. I really have no sympathy for banks. And, the banks do not care about Louisville. They own or sell homes to uncaring investors and the blight continues.
I probably would have gone higher on that house I lost, but without any feedback I was scared to bid a lot. I had read that banks play these games and I didn't want to up my bid unnecessary. I want a good deal; I want to spend as little as possible on the purchase price so I can spend more to fix it up. It's a stacking game that investors are better at playing. How I see it, it will not be long before only a handful of investors own all the properties in low income areas.
She also never mentioned Homepath Properties where owner-occupants sign a contract saying they will stay in the home for 1 year (this is an option for me) or, if investor bought, the homes have 3 month deed restrictions. These houses have a 15 day preference towards owner-occupants.
Further, she never answered any of my emails directly.
So, I let her go. I need a more assertive agent. I realize they are not going to make much commission off of this deal, but, in theory, I plan to sell this house someday and I may buy others down the road. This is like a reduced price trial offer. I need someone that will guide me a bit better to help me fight the investors regardless of their commission. I am asking for the moon, I realize.
I think I found her. She is the mother of one of my co-workers. I sent her a Homepath property I like and I hope to place a bid by tomorrow on (yet) another property. This time I am doing so with only seeing photos (I'll put an inspection contingency on it).
It does suck that houses are selling less than economy vehicles now.