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Long Beach Housing Market

Multiple Offers it's like Deja Vu all over again!
February 28th, 2011 12:44 PM
Long Beach is a great area, you keep hearing me say that.  Well the word must be spreading.  I haven't had experience like the past few weeks in a very long time.  About 50% of the listings on the MLS are distressed properties of one kind or another.  I mean they are short sales, have notice of default filed on them, are REO (foreclosed properties that the bank now owns and wants to sell), or are flips.  There are alot of nicer homes (appear to be nice) on the market that were purchased from the bank or at a trustee sale and they are being sold as remodelled.  One property I know of was pretty drab and priced at $449,000.  It was on the market for a while, someone bought it, painted the inside, cleaned and polished the floors, put on new counters and relisted it in 30 days for $559,000.   Of the 50% of homes left on the market I think about half of them are in need of work. Many of them need alot of work.  People can't afford to put the money into their houses just to make them look good to sell.  Then there are the ones that look fine but are dramatically over priced for their neighborhood.  Then there are that 10% (or less) of listings that are really lovely, don't need anything done to them, show beautifully and priced right for the market.  I have a client trying to buy one of those homes.  He isn't even stuck on the area, although California Heights would be ideal, but he'll go anywhere if the house is right.  Well every time we find a house and are ready to write an offer we are told there are 5 or 6 offers, bidding wars, one offer we wrote last week, we offered 10K under asking price, we got a call from the agent that they had 7 offers and the highest was 50K over asking price.  Multiple offers!  Well we found another home yesterday and guess what the agent told me today, we have 1 in hand, getting one later today, how about you want to make an offer too?  I suspect this house will go over asking price as well.  So we have houses we can't give away, people who want to buy and can't get financing, and then the terrible houses and now the beautiful ones that we can't get without going over our budget.  As professionals we're confused by all of this.  How do we ever explain it to buyers and sellers?

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Posted by Heather Burke & Sarah Ireland on February 28th, 2011 12:44 PMPost a Comment

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