Today marked a milestone for my short sale buyers Amy and Borna.  After losing six previous houses in multiple offers, we finally got selected as the first choice by the bank.  Back in March when we first started looking at houses, we searched for short sale and bank owned houses priced up to $150,000.  After writing our first offer, we quickly learned that offering lower than list price would get us nowhere.  We began to offer full price with conventional financing.  Those didn't work either.  We were either getting beat out by investors or other buyers who offered more than list price.  In June we got very excited because we were first to the table with an offer $25,000 more than list price.  Three days later we found out we'd lost to an offer with "better terms".  

Last week we decided to write offers on multiple properties and see which one got accepted first.  Finally today, we learned that one of our offers was accepted.  It was a short sale property listed at $135,000.  Our offer - $165,000.  If we can make it through the bank approval waiting period and the inspection, we should be good to go!

The lender mediated market has changed dramatically in the Twin Cities in the last six months.  The inventory is quickly being absorbed and the demand now seems to exceed the supply.  I'm amazed at how quickly it changed.  Hopefully it's a sign of an improving real estate market.