Recently a great client of mine emailed me a link to a great article and told me that when she read it, it reminded her of me and how much I stress the fact that banks are pricing their REO’s/foreclosed homes way below market. Although the article discusses the San Diego area, the reality is that this is exactly what is going on in the Irvine market place as well, and realistically, in any area of high demand.
The competition is stiff and almost every buyer is looking for a good deal, and they are told that foreclosures are where they can find those good deals through meda, friends, family, etc. Don’t get me wrong, there are great opportunities available through bank owned homes, just keep in mind that you are not the only one looking for them, so don’t expect to pay list price!
Check out this article to get real life examples of homes on the market that sell way higher than list price with multiple offers. It is very eye opening and provides great insight.
{ 2 comments… read them below or add one }
It is the same way here is Dallas. They are already priced to sell. Some times it takes a person losing a few so they get the point.
Hey Mike in Dallas,
You’re so right! Most of my buyers feed off the media, and family influence on how it is such a buyers market and try to low ball REO listings (despite the advice that I give them), and it always takes a couple of missed opportunities for them to realize that underbidding is just not the way to get their offers accepted! Thanks for the comment!