Many buyers in Southern California area are currently looking to short sales, REO’’s, and pre-foreclosures, as part of their home search. Many home buyers have found fantasic deals on these “distressed” sale properties, but the real estate market has changed DRASTICALLY in the last few months. There is TONS of competition out there for these properties as home values have come down to historicallly affordable prices.
In general, it is no longer a “buyer’s market” for these kinds of homes. You will almost always find multiple offers on these properties (if priced right), sometimes even the same day the home is listed. However, remember what I just said…”in general”! Real estate market has many sub-markets (ie: cities, price levels, type of property, etc.) and some may or may not be as desireable as others in the current market.
Are there deals to be found? Yes!… but most of these sales are now closing at above the listed price (if priced under market value)! It look more and more like banks and short sellers are listing the houses well below the general market price and hoping to attract a flood of offer. Only then to counter back much higher on these offers to the potential buyers in an attempt to attract a bidding war. The banks are getting smarter!
If you are looking to purchase one of these bank owned, pre-foreclosures, or short sales PLEASE PLEASE get some consultation from an experienced real estate advisor! Make sure you find out what the “true” current market price is in the area and don’t over pay/over bid. Yes, you will probably have to bid higher than the listed price as this “list price”seems to me more and more a ploy to reel you in to make an offer, only to later trap you into a bidding war. So make your highest and best offer first and stick to it! Please feel free to call me if you have any question pertaining to these ‘distressed sales…or for that matter any real estate question in general.
