I recently submitted an offer for my client to purchase a bank owned home in Chino Hills. My cleint's offer is $15,000 over bank's asking price with 50% down payment. By the end of the 1st listing day, there were 5 offers and my client's offer was out bid by an all cash offer.
This month, I am seeing bidding frenzy on some bank owned properties - especially the upgraded ones with move-in condition.
Another example of this craziness is the house at 14 Falcon Ridge Drive in Phillips Ranch. With wood floor upgrade, move in condition, and location right in front of the beautiful greenbelt, it was sold $61,100 over the asking price on 08/25/08. The asking price is $348,900 and the final price is $410,00 which is 17.5% over the asking price.
I recently received several phone calls from investors who no longer feel safe with money in the bank and have decided to invest in REOs instead. Couple with large tax incentives recently passed, this is probably why we are seeing the bidding frenzy over bank owned homes.
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