What's the relationship between list price and offer price in the IE? What's the procedure to make an offer? (Oakland: sales)

[killyourcar]

Years ago I bought a condo in Boston....at the time, the convention was that units would be listed for more than the seller would expect, buyers would underbid, there was no scheduling of bids or anything like that....I was the only offer on my place, & paid ~3% below list ($64K....imagine that....)

In the late 90s my stepbro bought a house in Oakland CA. They bid on 20 or so different places before theirs went through. Houses were selling for 15-20 % above list price. The broker would schedule a day to receive bids, and everyone would submit a bid on that day -- most places were getting a dozen bids or more.

Which of these scenarios is closer to the IE in current market conditions?
thanks

[tinajan]

Right now the bank-owned properties are seeing multiple offers above listing price. The banks list the homes at a low price and buyers who have been saving up and looking for a bargain will jostle with each other to get those great deals. In the end, the buyer on top will still get a great price that is almost half the 2006 sales price. Don't expect to get a lowball offer accepted with these bank-owned properties because the banks have knowledgable agents and appraisers giving them the heads up on local market values.

On the otherhand, the homes that are being sold by homeowners are typically higher in price than the bank-owned properties. These homeowners are trying to break even, but the housing market has declined since they bought, so that will be hard to achieve since many do not have enough equity in their homes.

If you want to make an offer on a home, go to a large local real estate company first. You want to be sure that you can have a big local company to support you with this big purchase. Pick an agent that is knowledgable. Have them do the paperwork for you. It doesn't cost the buyer anything to work with an agent. Use this to your advantage. If you're making an offer on a bank-owned property, have your agent call and see what the status is on your dream home. Then write the offer accordingly.

Visit TinaJan.com if you need more Inland Empire real estate news and advice.