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A Day Later and Still Reeling

A Day Later and Still Reeling

avatarthumbnail.jpgNews of eight offers on a bank-owned home that just hit the Phoenix real estate market (Mesa, actually) still has me reeling today.

How many of those would-be buyers actually saw the house in the one day it was on the market? How many are writing offers sight unseen, knowing they can cancel the offer after it’s been accepted if they don’t like what they see?

Simply put, how have we arrived back at the silliness of 2005 – at least in the REO side of the business? Did we learn that little back then? Or is housing hysteria inevitable in a place like Phoenix, where the sun keeps shining and the retirees and winter visitors keep visiting and the jobs remain available?

Here’s what I’d love to know (but won’t since I’m not the listing agent) …

  • How many of those eight offers are from investors and how many from buyers looking at the house as their primary residence?
  • How many of those offers were full price and how many were the usual BS lowballs?

Also, tell me if my logic is flawed. Lender puts a home on the market slightly below the current market value in hopes of attracting attention and offers. Multiple offers come in, which most likely will push the price above list. Push the price high enough above list and suddenly the price is at or above market value.

Appraisal? Only an issue if there’s a loan being done or if a cash buyer wants to have one, though many lenders’ counteroffers and addenda wipe out the financing contingencies.

Other than the fact we’re talking about this in a trough and not a peak, and aside from the fact this isn’t happening in the entire market but only among bank owned homes, does the above scenario sound all that much different than three years ago?

Ugh.

[tags]Phoenix real estate, bank owned homes[/tags]

No Comments

  • Rod Rebello says:

    Yeah, it’s frustrating. Had similar REO with 20 offers in 3 days. Listed at $110K, sold $163K! My buyer didn’t even try. Now I’m stuck in short sale hell on his alternative choice.

  • I’ve been on the buyer’s side of several of these situations. I just wrote an offer for a client on a home in Gilbert that has been on the market for 2 days and has multiple offers on it. And have run into the same scernario from Buckeye to Queen Creek.

    Don’t get me started on short sales!

  • We’ve had this happen to us and our clients WAY too much in the recent months.

    Some buyers are acting like there is a shortage of bank owned homes coming on the market.

  • Steve Belt says:

    Yesterday I listed a home in North Scottsdale. It his MLS at 11am. I had an offer at 3pm. I had a second offer today. Yes, there is some craziness going on right now…