Good luck to you,
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.
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.
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!
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.
Be quick on your feet, act decisively and also include traditional sales in your mix, because short sales are so uncertain and time consuming.
Unwavering Commitment to Service
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.
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
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.
Broker - 01416432