Why distressed properties are so hot? Why I keep bidding full price and keep losing? What is a “Multiple Offer Situation”? What is a “Highest and Best Offer”?

My name is German Llanos, a Real Estate Expert. I this video I explain and discuss the reasons of the current “tight inventory” market situation.

There has not been much meaningful new construction during the 2008-2013 periods. The market was flooded with foreclosures and banks were not giving many construction loans at all. But during that period people still were having babies, forming households and relocating. The result is that now in 2016 we lots of housing demand and very tight supply.

What are your best strategies to buy for this new 2016 market?

1. Get real. Send competitive offers. Go over full price if needed. Use CASH (if you have it) to beat other offers for the deals that require that. You can put a mortgage on the house later.

2. Know what you want: Do your analysis before! You need to know the real prices of each neighborhood. Some people see a price of $400K and they automatically offer $350K. This is wrong!!! $400K might be a great deal already! Do not get stuck in the past! Your told me 3 times already that your cousin bought a house 3 years ago for $80,000 less the current asking prices. Yep! That was 3 years ago. That is an historic event like the 2008 recession. Things have changed a lot since then.

3. Act quicker: In 2016 good deals priced properly will go quick. Do not wait! Do not wonder around! Do not wait for a divine sign! If you did your homework, follow our advice. My team and I as investors are in the field every day and night and follow each City submarket. Just listen and follow to our advice.

4. You need to have a Realtor who can analyze and process facts and number fast. You do not need one with a fancy suit or a 2017 expensive car. You need someone who can deliver a CMA (Comparative Market Analysis) in minutes. Who can tell you everything about the neighborhood and the block you are buying in seconds.

Again, my name is German Llanos, Managing Broker of 24 Hour Real Estate LLC and my team and I are always ready to help! Contact me at 847-962-0923 email: german@24chitown.com