Lately the Countrywide foreclosures that have been coming my way have been listed below my BPO (broker price opinion). It was reflected on my latest scorecard too, I got dinged 20% because I was selling them too high – my REO closed sales last quarter were 107% over BPOs.
But Bank of America changed the name last week, did they change the pricing strategy too? Or are prices going up in Oceanside?
The sold comps I used on my BPO were $371,000, $390,000, and $390,000.
But the active comps were $299,000, $360,000, and $367,777, and all six were the same or similar models in the same tract as the subject property.
My BPO was $369,900, figuring that they’d consider the active listings too, and keep with their aggressive pricing of late.
Instead, it listed for $394,800. There is already an offer in too, very close.
Here’s the youtube tour:
They did a great job on the paint and carpet.Should sell at your BPO.
Hey I was thinking about the guys that paint grass over the weekend.Do any of you know if they use some special paint for this?It seems to me this could be a big negative for water quality.all the paint leaching into the ground and running off into storm drains then to creeks and rivers.They must be using some paint that is less harmful to the environment.If they are not I got to imagine water quality is going to be talikg to them soon.They are already running commercials up here in sacramento about using to many fertilizers on your lawn.
The article said they use special biodegradable paint. I’m seriously considering doing this to my lawn.
LOL Classic, new H3 in the driveway of a short sale. That should be the poster image for this whole mess.
I think they’ll get the $394K. House is empty, finished and nice. Seems like a deal. Lower tier home prices are going up.
What is 107% of $369,900? It’s $395,793. Hmmm.
Please keep us posted Jim.
What is 107% of $369,900? It’s $395,793. Hmmm.
I guess I need to quit thinking this is a declining market?
Second offer coming in this morning.
What this anecdote may indicate is there is more up and down in prices now. That’s a sign that even if prices are still declining, they are more gradual than in the past. Piggington’s blog showed this as well. What it means is if prices declined 20% a year before, it might only decline 10% for the next and then enter the single digits.
That said, all signs indicate continued declines for the market as a whole. But that doesn’t mean individual zips like Oceanside which have seen big correction aren’t going to be relatively flat. I think it’s all going to come down to employment, and the substitution effect of supply and demand.
I think the unemployment numbers will ultimately decide if we’re moving sideways or farther down in pricing. It’s hard to see how 4S Ranch holds up if there is any significant job loss in the tech community in RB….just as an example
I guess I need to quit thinking this is a declining market?
Supply and Demand.
Banks are keeping the supply of Foreclosures low which pushes the number of able to purchase buyers into bidding wars. Thank you tarp and all the loan modification programs.
I agree with Mark. Banks will play their games with holding back foreclosures for months, but eventually unemployment will take it’s toll on the market.
Sony in RB announced it was laying off 190 and pushing another 150 into early retirement this June. HP and the others are sure to follow.
I thought the TARP and loan mods weren’t going to work? What happened? I can’t believe things are getting better, this is terrible!
Jim, here’s the deal and it’s pretty ingenious.
First, list REO/short sales waaay below bpo and comps, word gets around that to buy one, you have to offer over list. Folks get used to this and then….increase your list price OVER bpo for the latest listings while buyers are still in the you must pay over list mode.
H3 is only car #1. I wonder what is the make and model of car #2 – any guesses? My guess is C class Mercedes. Is it true once a home is REO, the bank is not so interested in offing the property since they have already taken the loss? I would think they have more incentive to SS?
kwaping,Thanks for the info about the biodegradable paint.I might run down to home depot later and see if they sell this stuff.
Do you guys remember this tool:
http://www.youtube.com/watch?v=bM9xuxZypu8&eurl=http%3A%2F%2Fsootandashes%2Eblogspot%2Ecom%2F&feature=player_embedded
I’m thinking they are testing the limits of fluff and roll. They agreed to all the repairs to see if it gets a substantially higher price. Some newbie in the disposition department is using you as an experiment.
Two offers? There are a lot more knives out there than I thought.
“I thought the TARP and loan mods weren’t going to work? What happened? I can’t believe things are getting better, this is terrible!”
Tarp and Loan Modification programs are one of 2 things…
1. A way to privatize profits and socialize losses
2. A way to push-off the pain of losses to a later date
While they might be “helping” the economy to not return to market prices as quickly as they would without them. The ends don’t qualify the means.
Shadash- the ends do justify the means. This isn’t about overpriced speculative real estate anymore. Look at median prices and incomes, home affordability etc. It’s balanced again and better.
Stock market is getting better too. Checked out housing tracker lately? Funny how nobody mentions it anymore. http://www.housingtracker.net/asking-prices/san-diego-california
Things are turning around, it is time to get used to it. Go make some money or something with your many degrees in economics.
Yup, everything is just peachy, the economy is on the mend, smooth sailing from here on out.
Mozart,
I work several jobs making money is not an issue.
Also, the economy is not on the mend. Problems have just been pushed out to a later date.
The multiple offer situations are on a very small minority of the best properties at the lowest prices. Nothing else is moving.
Mozart,
Do you really think 2004/2005 were indicative of a “good” economy, and something we need to get back to?
Personally, I’d rather see JOBS — real jobs that don’t involve shuffling paper assets and homes back and forth to one another at ever higher prices — and homes that are affordable to working families…without gimmicky mortgages and taxpayer-funded bailouts of the very industries that brought on all of these problems.
What’s going on right now is just setting up the next wave of foreclosures. Just watch.
Turn out the lights, the parties over.
Are you referring to the Houston Rockets? The series hasn’t started yet!
Things are turning around, it is time to get used to it.
“The spring of 1930 marks the end of a period of grave concern…American business is steadily coming back to a normal level of prosperity.”
– Julius Barnes, head of Hoover’s National Business Survey Conference, Mar 16, 1930
Lakers gave that one way… though I was amazed at Gasol’s ability to make Yao look mobile.
I think you guys are having fun reading fortunes in the tea leaves. This is just the summer bump.
Mozart-Housing Tracker’s data is list prices, not sold prices. There are still a lot of WTF priced private houses out there, and all the cheap REOs are selling quick. The combination of those two factors means that list prices are going up while sold prices are still going down. Check out Redfin’s graphs for proof. List prices are near meaningless-sold prices is where it’s at.
http://www.redfin.com/city/16904/CA/San-Diego
If anyone is still reading this, I’ve repeatedly said list prices don’t count, but sales do.
And, you cannot deny the inventory dropping.
We will see.