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Back in September we featured the same floor plan a block down the street - it listed for $144,900, and was purchased for $177,000 by flippers.

They have since put it back on the market for $277,000 and found a buyer within 27 days – it’s now pending: http://www.youtube.com/watch?v=cWqFEvlB4BA

Two weeks ago this one hit the open market:

What’s the common denominator amongst today’s buyers?

The bidding wars are intensely competitive, and without laws or regulations – anything goes! It is pretty impressive how many buyers are hanging in the fight, and willing to bid higher than list-price. Nobody likes it, but the multiple frustrations along the way make people want to just get it over with!

3clicks wrote:

“While I embrace the Internet for many reason, It would be used by some as another way to disguise the snake oil.” 

Agreed, but once every listing has a video it will cut down the deceit.  Videos should be mandatory, and they’d especially help the bank-sellers in far-away towns who should have the benefit of seeing their REO and the comps for a thorough review.

It might have helped here:

The internet has magnified our quest for instant gratification.

In real estate, the internet helps to stir up a frenzy by allowing a potential home buyer to search for an attractive property – and when they see a hot one, they’ll look into it. But by the time they react, it’s already sold. Buyers learn to react faster and faster, and after missing one or two good ones they’re on the edge of their seat, checking for new meat every few minutes!

Here’s more:

George asked for an explanation of the frenzy-like conditions we’ve been seeing lately.

How do you explain it? 

Lower prices are the #1 contributor, and in Carmel Valley that means roughly 20% off peak pricing.   Buyers are tired of waiting, and if the deal is seems good enough, many will buy just to be able to get on with life. 

Four of these houses sold at peak pricing, and had to endure haircuts of -17%, -18%, -20%, and -21%.  A couple of the sellers had to write a check for $25,000 to $50,000 to close, but the others had equity.  There were no short sales or foreclosures.

Here’s a video of nine houses that have recently sold under $300 per sf in Carmel Valley, 92130:

Who cares where the market has been, where is it going??

How do you know if the market is going up or down? Better or Worse?

Monitor specific listings in your area.  Rate each listing based on how well the list price reflects the value (and eventual SP).   

Does the list price incite urgency? 

Did you grab for your checkbook?

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Early in my career I learned to use this sophisticated organizational system to assist with tracking – I put each listing in one of these three categories:

1. Hot Buy

2. Warmed-Over Turd

3. Dog, Barks at Traffic

Try this at home!  You’ll see that using these categories will help!

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How fast they go pending can give you a clue about the sales price:

First 10 days = list price or higher

11-30 days = within 5% of list price

30+ days = at least 5% to 10% off list

We’ll follow a few listings to help gauge the market’s direction in the fourth quarter – here’s a youtube tour of the first set: