Is this strategy working? Price property low, pull in multiple and higher offers. Is this a way to see what the buyers are willing and able to purchase? Does competition make buyers more anxious? How long will it take before the buyers see what is going on and hold back to stop it?
When you stop and think about what impact is holding back on properties that have been foreclosed and is now owned by the banks.... At first, you think nothing but after checking our areas like Hayward, CA you see that the demand is overweighing the supply and those are fighting words!
Buyer Agents are having a hard time landing a property with the offers they are presenting in Hayward. It has nothing much to do with the amount you offer as it does the competition of the other agent's offer.
I just had a property listed in Hayward, that is just the average Hayward (Southland area) home with no upgrades or anything special, but you would not believe how many calls, email inquiries and offers we received on that property! It shocked me.
Getting back to why is this happening? It is because the banks are holding back on releasing properties that they have foreclosed on and that makes the supply low in Hayward and it is not matching the demand. It appears that there are no available bank owned properties in Hayward and other areas.... But really there is going to be a flood of bank owned properties coming your way real soon.
I believe the purpose of this is to help bring the market back up. Price them low, pull in a flood of multiple offers and see what people are really willing and able to pay for these properties. It is a false bubble - and I am not sure that is enough to bring the market back up.
Buyers.... Get your pre-approvals and go on and buy now so you will not look up and see that the market prices have increased and is headed upward before you can get that deal on a property.
Call 866-543-0461 if you need an agent to represent you in a purchase of a home.
WEBSITE: http://www.motheranddaughterrealtyteam.com
Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties. Our aggressive marketing plan includes on-line listing advertising.
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Area V-Pres/GM - Family Realty /Mother & Daughter Team -Focus: Buyers, Sellers, New, Resale, Short Sales, REOs, Relo. Call: 866-750-8282/Text: 209-627-9119. www.motheranddaughterrealtyteam.com
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Yes, I agree.
That seems to be the theme here in the Los Angeles area.
Almost all the bank-owned properties (and a good amount of short sales) are pricing their properties below market and all of them are generating multiple offers.
It's all good, but the only potential problem is the appraisal if the winning offer gets pretty high.
My buyers are all going over appraisal value, and many of them are willing to pay a certain amount over appraisal should it come in below the offer price. The Eastvale community in Corona, Ca. is where this practice is prevalent.
Cameron Novak
Eastvale, Corona Real Estate Agent
The Homefinding CenterTM
Corona, California
951-212-7479
Absolutely, preapproval first, then lock in the rate the minute they dip down, because rates are on the way back up. Be ready to go!
Banks are pricing low to generate the best and highest offer at the quickest time.. great tactic
It's working here, as properties are selling for over list price every day
Featured in the Group "Whacked!!!"
Rosemary,
Great Post. Banks have been more aggressive with pricing of homes, to move them more quickly, it does make tough for first time home buyers to miss out opportunities.
Thanks for sharing,
Matt Naumann
Ralph - nothing wrong with multiple offers -- but they do generate alot of work. I met alot of agents I didn't know about. Glad its in pending!
Cameron, I had a couple say that on their offers. But the bank chose the cash, no repairs, quick close, no credits offer. Over asking, and probably will not get an appraisal.
Penny - you so right. Interest rates are creeping back up --- daily!
Fernando - yep the banks know the game!
Richard - Featured!! Me? Who me! Thank you so much. My first!!! I am excited.
Matthew - I hope it doesn't discourage first timers, but they will have to figure out the game.
Pricing them low was prevalent in our area but now with the pent up demand, more buyers than properties, even if the property is priced higher we receive multiple offers and the banks are wanting the buyers to pay contract price.
Va and FHA buyers are getting knocked out of the market.
Cameron - never know what will work best! Multiple offers can keep going and going..... extra work