In this story about Oceanside real estate, I mentioned that a lot of listings are attracting multiple offers and sparking bidding wars.
If you attended our economic forum last month, you might remember broker Jim Klinge describing an example of what’s happening in Oceanside.
I included the details from that sale in last night’s story:
One of Klinge’s pending bank-owned listings, 2409 Winter Road, sold previously in June 2005 for $490,000. The three-bedroom, two-bathroom house is 1,060 square feet.
The bank had Klinge list the house for $224,800. Klinge received 22 offers and accepted an offer for $265,000 — 18 percent over the list price.
In the places where prices are about half-off their peak prices, he said, the homebuyers who want to live in the houses are being outbid by investors who can pay hefty down payments and who seek turn a profit by renting the houses out. Often buyers are making dozens of offers, only to be outbid each time. And so the bidding wars are not necessarily because someone really loves a particular house — just that the process is exhausting.
“That frustration is impacting the buyers and the agents — the buyers just want to get something and the agents want to get paid,” he said. “The buyers are willing to pay over list price just to get it over with.”
And here’s a look inside the house from Klinge’s blog, posted before the home was in escrow: