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.
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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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If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.
Rosemary...
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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.