Crazy Bidding On Babk Owned Properties

Recently I am seeing bank owned homes received 30-50 offers couple of days after it was listed. Especially the ones that are in good move in condition with lots of upgrades.

I am also seeing overbidding on the bank owned properties at a price that is substantially higher than the regular sales at market price.

The followings is a list of example of bank owned homes recently sold to demonstrate this kind of emotional bidding.

No. 1 - 1955 Silver Hawk Drive, Diamond Bar
List Price: $549,900
Sold 18.6 % over asking price for $652,000 On 05/18/09

No. 2 - 1024 Summitridge Drive, Diamond Bar
List Price: $621,225
Sold 12.3 % over asking price for $698,000 On 06/17/09

No. 3 - 20133 Illuso Ave, Walnut
List Price: $400,000
Sold 12.5 % over asking price for $450,000 On 06/11/09

No. 4 - 3258 Olympic View Drive, chino Hills
List Price: $419,900
Sold 10.7 % over asking price for $465,000 On 06/26/09

We were not seeing this kind of crazy bidding even during the 2003-2007 boom market. Before making an offer, ask your agent to give you a list of comps in the area to help you decide on the offering price. Appraisal website such as www.Zillow.com is also a good place to double check and make sure you are not overbidding.

Buyers shall exercise logic and caution when submitting offer on bank owned properties by utilizing facts and reasons to avoid paying a price that is over the market price.