Forclosures, Shorts Sales && Offers over asking price, they don't add up. Any thoughts?

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ggkwu_IHB

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I see forclosures and short sales all over the place even in Irvine. Because of that, I would think market is going down and I would be getting a bargain. But for a couple of houses that I was going to make an offer on, people are still paying at asking price or even more sometime. So I'm confused if my agent is full of it or if people are actually paying full price or more. I would appreciate your opinion.
 
Don't worry about it. Here is the approach to take locate houses you would like to buy offer fair market value minus 15% and see who counters. If they don't counter screw them and move on. Don't try to figure out there motive or what they are smoking. I'm currently buying in Irvine in the 1M range and I will get a great deal. I have the upper hand you have the upper hand too and don't let anybody make you believe otherwise. I personally think the best buys will be early next year. Keep in mind despite the state of the housing market that this is the peak of the housing market. This is the time of year that people with kids buy so they can move in before the end of summer before school starts. Be patient and you will end up getting a good deal. Also keep in mind most realtors will say whatever they can for you to raise your offer. Not my realtor. I tell him what to bid and he offers whatever I say. NO BS about insulting the sellers or that is too low. I have an awesome realtor who is looking out for me.



Good Luck



Bill
 
your agent isn't full of it. people are paying asking price or more. now you just need to dig deeper beyond that.



are people really are starting to price realistically?

is the trend still downward though? when one house goes for asking price, does the next house on the block go for below that comp?

if its a short sale or REO, is the asking price a low ball thrown out to generate bidding?

is that the original WTF asking price or the asking price after 120 DOM, reduced 3 times, and then relisted?

what about volume?
 
Not all homes for sale are created equal...some are short sales, some are REOs, and some are just regular sales. The homes in the newer parts that are in good condition and that show well will get the most interest which will translate into more offers. Don't think that a newer fully-upgraded home that shows great in a newer part of Irvine will be equal to in price/sf to an older REO home that needs some major TLC. There are still buyers out there that put emotion into the equation when making offers on homes that they fall in love with.
 
[quote author="hbguybill" date=1214887985]Don't worry about it. Here is the approach to take locate houses you would like to buy offer fair market value minus 15% and see who counters. If they don't counter screw them and move on. Don't try to figure out there motive or what they are smoking. I'm currently buying in Irvine in the 1M range and I will get a great deal. I have the upper hand you have the upper hand too and don't let anybody make you believe otherwise. I personally think the best buys will be early next year. Keep in mind despite the state of the housing market that this is the peak of the housing market. This is the time of year that people with kids buy so they can move in before the end of summer before school starts. Be patient and you will end up getting a good deal. Also keep in mind most realtors will say whatever they can for you to raise your offer. Not my realtor. I tell him what to bid and he offers whatever I say. NO BS about insulting the sellers or that is too low. I have an awesome realtor who is looking out for me.



Good Luck



Bill</blockquote>




hbguybill: So what if this is a short sale, would you still put in an offer minus 15% or is it a different "game" when it comes to short sales?
 
I think it's more a matter of most people not knowing where the market is. Prices have fallen more in the past *year* than they've fallen in any entire previous post-war cycle for California. It's hard to know what a used home is worth because there are so many variables. Somebody who did a lot of shopping in January might have set the prices in their mind near January levels and be willing to pay far more than somebody shopping now. On the flip side, somebody following the market will know that the current prices are still too high. Basically the market is changing so fast that given the illiquidity of real estate there really isn't a market price at the moment, more of a wide chaotic range.



I wouldn't get into any bidding war for exactly that reason. Those are the "overpriced" houses and right now you'll pay a huge premium for an "overpriced" house.
 
[quote author="heatherung" date=1214888657]hbguybill: So what if this is a short sale, would you still put in an offer minus 15% or is it a different "game" when it comes to short sales?</blockquote>


I wouldn't be using 15% as a hard and fast formula. In looking at short sales, you just never know what, if anything, the bank is going to do. It's entirely possible that the list is already 15% off of what the bank is owed, or more. If you poke around, there is a good thread about short sales that IrvineRealtor started.
 
Myrealtor kept saying that the market has bottomed out, bids are competitive, and underbidding too much might cause him to lose his credibility. I was about to bid on a condo 5% below asking price but he said the selling agent will not even take that kind of offer. He wanted me to bid at asking if not higher because the market is "competitive right now". Well 2 months later that property has not sold and the asking price is now at 10% below the original! I'm so glad I didn't listen to that agent - I would have been pissed. And I'm glad I held off making any kind of bid anywhere. So going back to what ggkwu said, it just doesn't make sense that people would be overbidding.
 
[quote author="Tigasulo" date=1215144212]Myrealtor kept saying that the market has bottomed out, bids are competitive, and underbidding too much might cause him to lose his credibility. I was about to bid on a condo 5% below asking price but he said the selling agent will not even take that kind of offer. He wanted me to bid at asking if not higher because the market is "competitive right now". Well 2 months later that property has not sold and the asking price is now at 10% below the original! I'm so glad I didn't listen to that agent - I would have been pissed. And I'm glad I held off making any kind of bid anywhere. So going back to what ggkwu said, it just doesn't make sense that people would be overbidding.</blockquote>


You and I must have the same agent. :))
 
[quote author="ggkwu" date=1214883079]I see forclosures and short sales all over the place even in Irvine. Because of that, I would think market is going down and I would be getting a bargain. But for a couple of houses that I was going to make an offer on, people are still paying at asking price or even more sometime. So I'm confused if my agent is full of it or if people are actually paying full price or more. I would appreciate your opinion.</blockquote>


I've had the same thing happen. My agent keeps telling me he thinks we are at bottom. Never says one negative thing about the market. I understand his position but it start to wonder if Im with the right agent. Always telling me that the properties Im interested in have bids for full price.
 
[quote author="LJinOC" date=1215653671][quote author="ggkwu" date=1214883079]I see forclosures and short sales all over the place even in Irvine. Because of that, I would think market is going down and I would be getting a bargain. But for a couple of houses that I was going to make an offer on, people are still paying at asking price or even more sometime. So I'm confused if my agent is full of it or if people are actually paying full price or more. I would appreciate your opinion.</blockquote>


I've had the same thing happen. My agent keeps telling me he thinks we are at bottom. Never says one negative thing about the market. I understand his position but it start to wonder if Im with the right agent. Always telling me that the properties Im interested in have bids for full price.</blockquote>


I agree with QH hunter, padrebrian.

I have an agent that I am sort of satisfied, she doesn't tell me to make a full price offer.

Of course she won't say that we are not at the bottom and price is going to fall more, but she does tell me if the listing price is high or not in this market.

And she tells me to make a little bit lower offer than I am willing to pay since it is a buyer's market.
 
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