Los Angeles

[_J_]

Two weeks ago, I found a good property listed on the redfin for just less than 24hrs. It's a 2bd/2ba SFR located in the hill side of good NW Glassell Park negiberhood, right bordering the city of Glendale.  The asking price for that house was $260K and it was an REO property.  The house offers a fantastic 180 degree panoramic view, overlooking the valley and the 2 freeway.  My wife and I checked out the house right after the house was listed, and we wasted no time making an offer at $320K soon after we left that house. By increasing the bid 60K more than the asking price, we're hoping that we can get that dream house, or at least get to the 2nd round for a counter offer from the seller. 

I waited for the reply eagerly, hoping that I can hear some good news from my agent.  Three days have passed, I still have nothing come back to me.  I finally called my agent and have him to ask the listing agent if our offer has been accepted.  Superingly, the answer we got from the agent was: "320K? That's WAY too low, we have received more than a dozen offers within 3 days and most of the offers are well above the listing prices, closing to 400K. We decided to just counter the top 5 offers." 

Bid on a house that was listed for $260K, for a price of $400K???  Isn't that crazy for TODAY's market?  Although the condition of that house is good, the area where it's located isn't as good as what the house is truly worth. The comps for that house in the areas ranges somewhere from $260K to 340K, the tops.

What's wrong with those people who rather to pay 140K extra, just to get a REO house? 

Message Edited by Jason73 on 05-11-2009 01:16 PM

[WTH]

Sorry to hear your story Jason. But remember, one door closes another one opens. I believe that when this Spring Buying Fever cools down, numerous wonderful houses will come available this summer and fall. Silly people are believing all the crap that these agents are feeding them. I’m telling my wife the same thing, patience WILL pay off!!!

[amydevemma]

You really have to ignore the listing prices in this market. They intentionally list them lower than what they really want in order to get more offers.

Check the comps, consider the condition of the home, and offer accordingly. Trust me, if homes in the area are selling for $400K, there is no way you will get that home for $320K. 

[amydevemma]

And also remember, just because you are not the highest bid, doesn't mean you are not the best bid.

The banks consider the NET offer, meaning they subtract the agents' commissions and any closing costs (if you are asking for them) and consider that number when comparing bids. 

[Noz]

Why on earth are you people getting into bidding wars AGAIN???

Didn't anyone learn anything from the complete clusterfrak that has been occuring for the past 8 years?

Come on folks...we have no one to blame but ourselves for sustaining this BS.  

DON'T BID....let some other sucker bid.  Move on.

[TrabucoDom]

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Jason73 wrote:

Bid on a house that was listed for $260K, for a price of $400K???  Isn't that crazy for TODAY's market?  Although the condition of that house is good, the area where it's located isn't as good as what the house is truly worth. The comps for that house in the ares ranges somewhere from $260K to 340K, the tops.

What's wrong with those people who rather to pay 140K extra, just to get a REO house? 

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If the top bids were over 400k and the top comps were around 340k it is likely that loans will not be approved since the appraisal will not come through. So unless it is a cash offer, the price will probably need to be reduced to the range of the comps. 

[endlessfall]

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Noz wrote:

Why on earth are you people getting into bidding wars AGAIN???

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Because none of us wants to be the non-bidder with the lowest offer. We'd feel really stupid to let other "non bidders" to get our dream houses without paying more than we do.

[Noz]

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endlessfall wrote:

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Noz wrote:

Why on earth are you people getting into bidding wars AGAIN???

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Because none of us wants to be the non-bidder with the lowest offer. We'd feel really stupid to let other "non bidders" to get our dream houses without paying more than we do.

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I sense sarcasm....correct?

[Pam99]

I don't see the harm in bidding what you think is reasonable for the house. Seems to me that the OP did the right thing - bid what they thought the house was worth and no more. It'd be foolish to do anything else (either not bidding, or bidding too much).

[_J_]

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endlessfall wrote:

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Noz wrote:

Why on earth are you people getting into bidding wars AGAIN???

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Because none of us wants to be the non-bidder with the lowest offer. We'd feel really stupid to let other "non bidders" to get our dream houses without paying more than we do.

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If we can't get that house at our max affordable price, we just let other people who can and will pay extra to own that house.... We didn't go crazy to increase our bid, simply trying to outbid someone to get that house. It's not worth it, we knew that. 

I thought that house would worth $320K ,so we gave it a shot.  We tried and didn't get it.  It's not mean to be ours. That's fine, we let it go and wonder how much will it end up selling for.

Message Edited by Jason73 on 05-11-2009 02:05 PM