Home Buying in Fremont>Question Details

siaj_nad, Home Buyer in Fremont, CA

Market sentiment , trying to make sense of it ( 390 KING Ave Fremont, CA 94536 )

Asked by siaj_nad, Fremont, CA Thu Mar 21, 2013

Just notices this house got sold for $631,000. It was listed for $525,000 originally. It is 100k more. Is this common. The schools are ok, i wonder how is it in area like Mission/Warmsprings which has better schools.

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It may have been the pricing strategy of both the seller and the listing agent to price the property artificially low to attract the biggest pool of buyers ....which result in multiple offers at over list price.

People should understand that the price is not the sole basis for writing an offer -- look at all the comps, the market activity. In this market of low inventory where there are multiple buyers who want to take advantage of the still-low interest rates, it is nearly a given that there will be multiple offers.

The overbidding and multiple offer actually started early 2012. And many buyers were stunned to discover the market has turned from a buyer's market back to a seller's market.

Hopefully you are aligned with a realtor who is not merely experienced but also knowledgeable and resourceful who can strategize with you when you are ready to write an offer under these conditions.

Good luck.
0 votes Thank Flag Link Fri Mar 22, 2013
Here is a post that may be helpful:

Tough Year Ahead: Top 10 Issues Facing Bay Area Buyers
http://www.trulia.com/blog/carl_medford/2013/01/tough_year_a…
0 votes Thank Flag Link Thu Mar 21, 2013
Firsttime,

The area you are looking in is North Fremont which has good schools, but is not as highly rated as the schools in Mission or Irvington (High Schools).

You will find the prices higher in the Mission area with equal competition for each home as it becomes available in the market.

Low inventory and pent-up demand are the cause and without any new sources of inventory on the horizon, it looks as if it will be this way for a bit. So many people were waiting on signs for a positively moving economy, that once it hit, it was a scramble for homes.

That said, it is very much worth your effort to make sure you hire a well-versed realtor that knows the area, knows the level of competitivness and can make the appropriate offer for you (too low and you will not get a response, you want just enough to get a counter offer if possible).

For first-time buyers, it can be that much more cirtical to have that realtor advocate there for you - if you would like me to make a referral, I would be happy to do so.

Please feel free to call or email me with any questions you may have about the King Avenue area or any other area here in the East Bay. Best of luck with your offers!
0 votes Thank Flag Link Thu Mar 21, 2013
You need to work with a RE professional who is good at articulating the market trend and establishing the facts backed by solid data. I know it is hard to make sense when you look at only the digits. There is more to it.......
0 votes Thank Flag Link Thu Mar 21, 2013
2 important phenomenon at play here.One is affordability increase and interest rate all time low and second is rapid market correction.Most of the homes selling for 100% and over asking price and sometime as much as 135% over asking.It is crazy market.Good for seller and challenging for buyers.Good Luck!!!!
0 votes Thank Flag Link Thu Mar 21, 2013
Hi,I looked t the comps and it does seem unusually high..I guess beauty lies in the eyes of the beholder.450 king ave sold for $539k sep 2012,and 30 king sold for $631k in mar 2013.The market has definitely moved up in the last 6-8 months.This home had a tone of upgrades as well.It is not necessary that all areas in Fremont including Mission/Warm Springs will get the similar results.
0 votes Thank Flag Link Thu Mar 21, 2013
Do not assume that the LISTING PRICE was fixed by using logic, reason and the Market Value:
We are seeing both extremes;
Pricing LOW to create multiple offers, and, stupidly pricing high, thinking that people will accept or offer a little lower.
You really should ignore the LISTING price and have your Realtor do a CMA to determine the Market Value.
The appraisal normally will not let you buy much above M. V. anyway.
0 votes Thank Flag Link Thu Mar 21, 2013
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