SoCal OC market - offer price

[Galaxie Girl]

Nothing wrong with offering less than asking, just don't expect to get it accepted. My husband and I own 4 properties, but I don't even remember how many we've made offers on - always below asking. Think of it like fishing - keep throwing out your bait, and eventually you will find someone who is desperate enough who will take it.

Btw, with short sales, I don't think that's likely to get accepted, as others said. Really doubt the bank will take that. But don't let a few rejected offers get you down, just keep trying.

Also btw, we are not in a bubble right now, we just experienced the ~15% "pop" in prices that happens right after the bottom of the market. So we're past the bottom, but we're nowhere near the frothy dangerous crazy bubble times yet. That won't happen for years. Assuming no unforeseen calamities (like The Big One, or we get nuked by North Korea, or whatever), we should continue on a slow healthy growth phase for a while.

[redrocket2]

I should add that there are a few exact comps for this property from last year:

6/12 - $398,000
8/12 - $407,000

what I found hard to digest is that the price has gone from $400,000 to $500,000 in the last 12 months!!

[Joe Van Fossen]

Originally Posted by redrocket2

I should add that there are a few exact comps for this property from last year:

6/12 - $398,000
8/12 - $407,000

what I found hard to digest is that the price has gone from $400,000 to $500,000 in the last 12 months!!

I'd say the people who paid $490-499K overpaid. They bought at a time where that was the norm. However, $450,000 would seem like a fair price for the short sale, depending on the condition/location of the home of course.

[thelopez2]

Originally Posted by redrocket2

I should add that there are a few exact comps for this property from last year:

6/12 - $398,000
8/12 - $407,000

what I found hard to digest is that the price has gone from $400,000 to $500,000 in the last 12 months!!

Why is it hard to digest? What was the impact on short sales in that area? What is the impact of short sales today.

[redrocket2]

OK, I checked with the agent and this property has been on the market now for 8 days and has not received any offers. It does not look like people are jumping up and down to buy it. If the property was so hot and priced right then why hasn't it received multiple bids by now is my question?

I'll check back in a couple of weeks and see what is going on, perhaps there will be a price reduction due to winter slowdown and they are motivated to sell? Who knows...

[oregonwoodsmoke]

Offer what you want to pay. The sellers will accept, reject, or start negotiations. Those are the possible results of your offer.