Tim, Home Buyer in Huntington Beach, CA

My Real estate agent told me that all houses in HB are in bidding war. (Short sale, REO, and Standard sale). The house comes in the market with lower

Asked by Tim, Huntington Beach, CA Sat Mar 27, 2010

price than accept multi offers for higher price. Is it true? How much is an average sqft for the property at zipcode 92647? Is 92647 a good area? Thank you

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It is NOT a buyer's market in most areas, with the exception of luxury real estate. List price is irrelevant, especially on short-sales. You should be looking at market value for each property despite what the sellers are asking. Many agents are still using the strategy of underpricing homes to create more traffic to the property. I wish these agents would realize that it's not 2008 anymore, and this tactic is no longer necessary. It's the basic law of supply and demand and right now there are more buyers than sellers in Orange County, thus demand is high and supply is low. This creates a bidding war on most properties, especially the ones priced at or below market value. Several factors are making this happen, including less foreclosures than 2008-2009, "normal equity sellers" reluctant to sell, less people moving, lengthy short-sale negotiations, and the home-buyer tax credits. If you are buying in todays market, you need to get in tune with what is happening now, and not last February.

Good luck to you,
Jeremy
1 vote Thank Flag Link Sat Mar 27, 2010
Hi, I am a Short Sale Certified Realtor in Orange County, as well as a resident of Huntington Beach, and I do live in the 92647. It is an awesome area of Huntington Beach, close to everything! As for the bidding war you speak of, stay away from those properties, and the realtors that are causing these awful bidding wars. As other realtors stated, it isn't 2008 anymore and I too wish realtors would stop this. In any type of real estate transaction, you should either have your realtor do their due diligence and show you the market data so that you can make an informed decision on what you want to bid for a property. Do not get drawn into those that seem too good to be true, because it probably is just that. In regards to short sales, I know they are going to be moving through their process a lot quicker now than before so as long as you are working with an informed Realtor, you could really benefit from purchasing a short sale property! Good luck to you!
3 votes Thank Flag Link Mon Mar 29, 2010
Hi Tim,

This is true....the current trend is to list homes artificially low and try and generate a bidding war. This allows the seller to get quick offers and move into escrow without being on the market for a long time. With a short sale or a REO they need to move quickly for different reasons than an equity seller. The short sale time frame is so long, that the want to get a quick offer to get to the bank to get the process started. The asset manager of a REO does not want the home on their books very long.

When considering an offer, try not to get caught up in the frenzy, though. I'm sure your agent is helping you with this. Make sure you look at the recent SOLD homes....this gives you an idea of what the final selling prices are on these homes. That's something you need to know because that's also what an appraiser is going to consider when placing a value for your home loan....plus, and more importantly.....you don't want to overpay for a home.

After all these things are considered, then you can feel comfortable writing your offers. Yes there are multiple offers, but this is also because the same buyer is writing offers on everything they see....or close to everything. They also know it's a multiple offer market and don't want to wait on one home and miss another...if they get a few offers accepted, they wil have to pick one, and that leaves it open to other offers..like yours. I can't tell you the number of times an agent comes back to an offer we placed weeks ago to say they are ready to take it.

Do your reseearch and then write reasonable offers....try and keep emotion out of it and you will do well.

Good luck,

Karen
1 vote Thank Flag Link Tue Mar 30, 2010
Hi, Tim.

I am a Huntington Beach Realtor and 92647 is a great area. Not all of Huntington Beach homes are in bidding wars. The homes that come on the market, excellent condition, great neighborhoods and priced below the market sell very, very quickly, and yes, most often above list price, with multiple offers.

Yes, most often the Short Sales and REO's will have most offers in the shortest amount of time - IF they are in great condition and in great neighborhoods.

Call me and I can go over the average s.f. prices with you and show you some great homes in that zip code.
Web Reference: http://www.cyndimino.com
1 vote Thank Flag Link Sat Mar 27, 2010
Tim,

I lived in HB in 92647 for many years. Great area.

In the Temecula Valley, our homes are gone at 0 days on the market in many cases with multiple offers and the "overbidding" has gotten out of control. One property we put an offer on, 0 days on the market, had a "cash" offer for $80,000.00 OVER the list price!!! With cash, you don't need an appraisal therefore they got the house. It is absolutely a crazy market!!!

It does seem overwhelming and unbelievable to many Real Estate agents out there too. As a buyer, it does seem like you're hearing information that's not true. But it is!

Trust your agent. Everyone is working really hard in this market to get our buyer's a home. I'm sure your agent is doing the same.

Good luck on your property search!
1 vote Thank Flag Link Sat Mar 27, 2010
There are currently 83 homes on the market in zip code 92624 with an average of 69 days on the market. An additional 62 homes area currently accepting back up offers or in pending status. 56 homes have closed escrow in the last 90 days with an average sales price of $500,975 or $351.28 ave/sf. Like many So Ca markets, if you are looking at homes for $500K or less, then there will probably be multiple offers.

If you are using a HB full-time realtor who actually does business, they probably have the best handle on what the market is doing. Good luck to you.
1 vote Thank Flag Link Sat Mar 27, 2010
I'll let your local agent s answer with specifics, but I am seeing this in New Jersey as well, in the lower price points - even well priced homes in the mid to upper prices, short sales and traditional deals. I am working with a couple that finally has an acceptance after missing out on four or five homes.

Be quick on your feet, act decisively and also include traditional sales in your mix, because short sales are so uncertain and time consuming.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sat Mar 27, 2010
Dear Tim,

Most are experiencing multiple offers. I would be cautious in using absolute terms, such as "all." 92647 is mostly a great area. There aren't too many parts of it to be concerned with. I love HB. My office may be in Newport, but I love HB so much, that I own and live in HB (downtown near Main Street and the pier).

As you're already working with a Realtor, I won't approach you for the sales representation, but I do ask that you consider my services as your Mortgage Broker for the purchase. My borrowers get lower wholesale pricing on their mortgages from all of the big banks that I partner with.

Please contact me directly to see how much you can save on your mortgage. Thanks.

Sincerely,

James Melton, Realtor & Mortgage Broker, CA DRE Broker #01222353, NMLS #300133
President, Victory Mortgage & Real Estate Home Loans & Sales Since 1979, NMLS #366399
2901 W. PCH, Suite 200, Newport Beach, CA 92663
cell(714)318-4664, phone(949)939-9676 or (714)374-0022, fax(714)844-9094
web http://jamesmelton.listingbook.com
email jamesm@socal.rr.com
0 votes Thank Flag Link Wed Apr 3, 2013
Tim, I would agree with your REALTOR. Many have adopted the strategy to list just below the market value to create a frenzy of offers. Average Sq ft in 92647 is probably 1500-1600 sq ft. Great area - all the Huntington Beach Schools are well rated. Homes priced right receive all the attention and offers while the overpriced homes just sit there. If you get auto-emails from the MLS, you'll see by the original list price and days on the market. Hope you found your new home in HB.
0 votes Thank Flag Link Wed Sep 22, 2010
Tim: Your agent is correct and you will be smart to follow his/her advice regarding homes in HB. You need to make your offer stand out and offer a higher EMD, and also make your terms and pre-approval attractive to the seller. This goes for Short Sale, REO and Standard, sales.
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Sat Mar 27, 2010
All of Orange County is in a bidding war. Any house put on the market at a good price is going to generate multiple offers. This is especially true with REO's and flips (houses bought at the trustee sale and resold).

A lot of the short sales are bait and switch in that the listing agent lists them for far under the market value to generate multiple offers. They hope to generate direct client calls so they can submit offers from clients of their own to double dip on the commission.

Don't get involved in bidding wars. You are not going to miss out on the bottom in this market. There are thousands of homes underwater and you'll have plenty of opportunities to buy.

Call me if you want more information about pricing and I'll tell you about my rebate program where I give you half of my commission. I gave clients back over $20,000 so far this month.

Brad Davidson
Broker - 01416432
714-961-8442
http://www.wehelpubuy.com
0 votes Thank Flag Link Sat Mar 27, 2010
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