Foreclosures and the return of Bidding Wars?
There are two assumptions most buyers seem to make about foreclosures in San Luis Obispo County these days:
Foreclosed property is a great deal
You can buy a foreclosure substantially under the asking price
I just did a quick statistic check on the sales prices of a handful of local towns. Here's what I checked;
Single family detached homes
Cities were: Morro Bay, San Luis Obispo, Atascadero, Grover Beach, Arroyo Grande and Pismo Beach
Foreclosed Properties
In the last six months (since 4/21/09) there were a total of 163 foreclosures sold. Of these 163 properties, 47 sold for OVER the asking price. Another thing I thought was interesting is that 51% of these properties sold within the first month they were listed.
Here is one example: 3 bed, 2 bath about 1500 sq ft newer (2001) home in Arroyo Grande. List price was $428,175 and the sales price was $440,000.
This tells me that these buyers were educated, experienced and bold! They were able to recognize the value of the property they were purchasing, because they knew the market they were interested in. Even if they had to go over the listing price, these folks knew values.
In fact, I would bet they were following the market for some time in order to have the confidence to go over and still know they were getting a great deal. They did not let their ego get in the way either; if they had to go over, they knew the limit they would go. Consequently, they bought a property they wanted at a price that was still under the market overall.
I have a very useful tool for anyone wanting to gleen market information as it pertains to them and the type of property they are looking for. It is a free, no obligation, market search. All you do is let me know either by phone (805-801-5529) or by email what you are looking for, where you are looking and what your budget is. I will then set up one or more searches for you that will automatically send you property listings to your email. This is the way to gain market knowledge and the confidence needed to participate in this wild market.
Let me set up a market search for you. Call (805-801-5529) or email me liz@slocoproperty.com and let me know what you are looking for, and I'll get you started!