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SoCal bidding wars and outrageous contingencies
invite response
2013 Apr 28, 7:01am 2,404 views 10 comments
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gregpfielding
2013 Apr 29, 2:03am
I won't play that game, so I keep getting out bid even though I am offering the full price asking price.
Unfortunately if you don't play the game, you'll never win.
Keep in mind that a house is worth what someone will pay for it. If there are multiple parties willing to pay around $700,000, then it's worth $700,000.
In a quickly-moving market, appraisals fall behind. If the appraiser can only prove with sold comps that the house is worth $650,000, then that appraisal is out of line with the market.
As long as there are buyers willing to pay market value, then no seller is going to sell to you at a discounted appraisal value. If you were a seller in a hot market like this, you would demand the exact same thing.
Shaman
2013 Apr 29, 2:18am
I happen to have two leads for you. Both are 2000+ sqf horse properties, right next to each other. The owner is the same person and is in dire straights with not being able to rent them. One is rented but the other has not been for six months, and the rented one is losing renters next month. Nice clean houses, and big. I think if nobody buys one or rents for a lot soon then they will eventually be foreclosed. Contact me at quigley151@gmail.com for the address.
Goran_K
2013 Apr 29, 2:25am
Santa Clarita has been hot the past 2 years. As people stop moving out to the exurbs, Santa Clarita is a great option to get into L.A with a reasonable commute.
I think you would have better luck in Acton or Palmdale.
lostand confused
2013 Apr 29, 2:42am
I don't know the current frenzy state-but Agoura Hills has some nice horse properties in the 700-900k range. Although , I don't know how it is today and if there are bidding wars there too? You also have a ton of riding trails there-if that is your thing. Moorpark also has a lot horse properties and a ton of horse trainers there and it is cooler than Santa Clarita. It used to be cheaper there-but again don't know today's state.
I like where you guys are going with these horse properties!!
I think I'm going to go in on one with AF and BMW Man. We shall raise horses to sell to the big processed food companies who can use them as cheap filler for their "meat" entrees.
Yes, this is happening in the DC area. I'm even talking mid-distance suburbs like Fairfax, Virginia. We're 0 for 3 on offers. Even had an escalation for 15k above asking on one of them. It actually sold for less than our escalation, but they had waived some contingencies.
Waiving contingencies seems to be the differentiating factor. Not sure if that means financing or inspection contingencies. Either way, I can't and/or won't compete.
The last house we inquired about had 26 offers after the first weekend, so we didn't even bother. Another townhouse in Fairfax was listed for $487...we weren't even interested in it at that price. ....it sold for $523.
So yeah, doubt it's as crazy as California, but the mania is in full effect in DC. And this is with looming defense cuts on the horizon that will affect this area disproportionately to the rest of the country.
PockyClipsNow
2013 Apr 29, 4:50am
What is the price point you are bidding in? (must look at over 900k to avoid the GSE,FHA crowd)
Also please let us know if you are using a buyers agent(kiss of death) or letting listing agent represent you.
housepoor
2013 Apr 29, 8:49am
What is the price point you are bidding in? (must look at over 900k to avoid the GSE,FHA crowd)
Also please let us know if you are using a buyers agent(kiss of death) or letting listing agent represent you.
Are you saying that in this market only go with the listing Agent?
Of course cash Buyers like me love these stories. Zillow is "zestimating" my home at a high of 115k 14 months later after purchasing my place for 43.5k. Some haters in here already accused me of bragging. I call it being happy for making the right move in an uncertain housing market. In addition, I really enjoy seeing others who made the right decision to buy. For the jealous haters, I hope you never get nothing but roach shit in your rented out dog house. O, yea, since appraisers are low balling estimates, I'm guessing my place is a solid 100k in todays market. :)
Of course cash Buyers like me love these stories. Zillow is "zestimating" my home at a high of 115k 14 months later after purchasing my place for 43.5k. Some haters in here already accused me of bragging. I call it being happy for making the right move in an uncertain housing market. In addition, I really enjoy seeing others who made the right decision to buy. For the jealous haters, I hope you never get nothing but roach shit in your rented out dog house. O, yea, since appraisers are low balling estimates, I'm guessing my place is a solid 100k in todays market. :)
Congrats buddy!
How about you celebrate by sucking on the barrel of a loaded shotgun?
I am attempting to purchase two properties, one in the Santa Clarita/Velencia area, and another one in Agua Dulce/Acton area. I have only been dealing with standard sales because I don't want to deal with the forclosure headaches. For those not familiar with the area, both are in Southern California. First is in a bedroom community of Los Angeles (quite a few commuters by train and car) and the other is 2 or 3 acres of horse property with a 2000 +/- square foot house in a rural area. I have put in full price offers and have been beat out by other bidders several times now (one home had 30 offers - I know, so the agents say) but most have at least a dozen offers. It's crazy down here. Once the owner gets all of these offers in it's not unusual to request the bidders give their best and final offers and they must agree to a contingency that says that the buyer will pay in cash, whatever price difference the house comes in under value.....basically, if the offer is 700K and the appraiser and bank say it's worth 650K the buyer will come in with 50K cash to make up the difference to get through escrow. The Realtors I have been talking to say this is common at this time of low inventory. I have a friend going through the same exact thing in Pasadena. I won't play that game, so I keep getting out bid even though I am offering the full price asking price. Is this going on in other parts of the country? The housing inventory is so tight it's causing problems here in Southern California.
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