I’ve taken so much crap for so long that I never want to come across as a cheerleader.
But everywhere I go in San Diego County, which lately has been covering more than just North San Diego County Coastal, I see the same results.
Homes listed in line with the comps are selling with ease. Those sellers that insist on tacking on 10% to 20% above the comps are priced to sit, and they do.
The buyers are well-educated, and can recognize value with a few clicks. Sellers are able to come to the same conclusions, and those that do have no trouble selling.
Examples:
5420 Chollas Station, 92105, was listed as a short sale for $190,000, and had an approved buyer – but Fannie Mae foreclosed instead. They listed it with me for $214,900, and no interest so far.
3936 Alabama #8 sold for $302,000 in 2004, but somebody tore it apart – needs new flooring, kitchen, etc, and even then it’s still a 872sf condo in a small complex in an OK area.
The last sale was a model match that closed for $163,000 in March. So because we need $30,000 in repairs, BofA lists for $124,900 five days ago and we have five cash offers and it’ll sell for over $140,000, as-is.
3403 Belle Isle is an old-Spanish style built in 1928 near City Heights, and on it’s second foreclosure in three years. The last guy was going to flip it after he paid $285,000 in 2008, but tore it all apart and ran out of money. Needs all new kitchen, bath etc.
Fannie Mae listed it for $149,900, and it’s closing tomorrow for $162,500, but if it weren’t for the stupid owner-occupiers-for-the-first-seven-days, I could have sold this 20-30 times easily.
6702 Bisby Lake was built in 1961, had very little done to it since, and was rode hard the last few years. It’s on a busy street, and others nearby aren’t selling.
It listed for $328,300 originally, which was 10% higher than any realistic person would pay.
It fell out of escrow once, and the second guy worked over the bank because it needed a roof, but still closed for $295,000 to an investor who paid cash. Look at those photos and location and tell me if you would pay the same?
Any properties priced reasonably around the coast sell the first week, and usually for list or higher. I have been in 20 bidding wars over the last 2 years, and almost always the price ends up 5% to 10% over list, if not higher, and most start at $800,000 and go up from there – with several over $1,000,000.
Buyers are holding out for top quality locations and condition of home, but when they see one they have no problem paying the price.
Are “prices” going up? No.
Is the market hot? Yes, for those sellers who get the price right.