In the last week, I have submitted offers for two different clients on two different bank owned properties. On both properties, there were multiple offers from other agents being submitted simultaneously. On one of the properties, there were four offers. Yes, four.
Both of the offers I submitted were for more than the bank’s asking price and one was much higher than the bank’s asking price. Both of the offers were rejected by the bank in favor of offers that “were substantially higher” than our offer. Wow!
So what the heck is this telling us?
I don’t know what its telling you, but its telling me that the banks are getting very serious about getting rid of all the properties they have foreclosed on. They can’t handle any more real estate inventory on thier books. They have reached critical mass.
I mean, how much property can they actually take back before it’s just too much? They have to get rid of these foreclosure properties. Think about how many properties the banks have amassed over the last few years. They are responsible for those properties. They have to secure, maintain, winterize, pay the taxes, pay the utilities and on and on. Just to protect their interest. It’s mind boggling. And don’t forget, banks aren’t in the real estate business. They are in the lending business. They don’t want to own real estate.
I just talked to another client today who said his bank actually contacted him to see if he’d like to short sale his property. They actually called him. In fact, they even said they would give him a financial incentive of some kind (outside of paying the bank less than they are owed) for him to short sale his property here in Sun Valley. All because they don’t want anymore property back. I mean, that tells the tale right there.
What else is getting outbid telling me?
It’s also telling me that buyers in Sun Valley are starting to get serious about buying these foreclosure properties, too. They are finally coming to the realization that the deals are about as good as they’re going to get and its time to snap something up. I mean, you know things are starting to turn when you have four offers being submitted on the same foreclosure property and all of the offers are over asking price.
Of course, there are still a ton of buyers out there who look a screaming deal right in the face and continue to write extremely aggressive offers. And that’s fine, because buyer’s are basking in the glory of one of the best buyer’s markets we will ever see so they’re trying to take advantage the situation. I don’t blame them. It’s just that things are beginning to tip the other way. And multiple offers on a property are a sign of that change.
Crazy days, man. Crazy days.