Flash sales: Homes snapped up in 24 hours
Super-tight inventory and swarms of competitive buyers have spawned a new
phenomenon: The “flash sale,” in which a home sells at its full list price — or
above — the very day it hits the market. Often these are all-cash deals, which
gives the seller peace of mind that they will close without any hitches. While
sellers may make more money by holding out for open houses and a bidding war,
the flash sale basically represents a bird in the hand.
Here’s an Oakland Hills charmer that sold hours before it was to hit the market. At the brokers’ tour, the fourth folks in were a broker and buyer who offered all cash at full list price of $650,000.
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For an expanded look at the
inventory crunch and its ramifications, including strategies agents are taking
to drum up sellers and a breakdown of number of homes for sale by county, click
here.
Redfin, which identified the flash sale trend, said that there have been
almost 1,000 flash sales in the Bay Area market since Oct. 1.Here’s an Oakland Hills charmer that sold hours before it was to hit the market. At the brokers’ tour, the fourth folks in were a broker and buyer who offered all cash at full list price of $650,000.
This Oakland
Hills house was a flash sale, sold at the full list price of $650,000 -- all
cash -- to the fourth person to tour it. A year ago, it lingered on the market
for 3 months. (All photos: Karen Taylor/Tour Factory)
Underscoring how much the market
has changed, Redfin’s Lynda DiVito, the listing agent, said the buyers tried
to sell the house a year ago but it drew no offers, despite several price
cuts.
She pointed to another example, in a different neighborhood (Pittsburg) and a
lower price range ($240,000) . “The buyers saw my ‘coming soon’ rider and my
photographer was there taking photos of the house with one of my partners and
they asked to see the property….they loved it, went home and made an offer the
day before we put it on the market,” she said.
This
four-bedroom house in a gated Pittsburgh community sold the same day it hit the
market for its list price of $240,000.
All photos: Karen Taylor/Tour Factory
All photos: Karen Taylor/Tour Factory
Carolyn Said is a San Francisco
Chronicle staff writer. For insights and news on Bay Area real estate, follow
her on Twitter @csaid
| Mar 22 at
4:00 am
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TheDailyWorker
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bannedagain at 5:54 PM on March 22, 2013 said
"'Buy now or be priced out forever!'
I heard that in '89, again in '97, once again in '06 and now they're dusting it off again. "
Biggggggggggggg difference this time. Mortage rates:
1989 10.5%
1997 8.5%
2006 8.0%
2013 2.75%
"'Buy now or be priced out forever!'
I heard that in '89, again in '97, once again in '06 and now they're dusting it off again. "
Biggggggggggggg difference this time. Mortage rates:
1989 10.5%
1997 8.5%
2006 8.0%
2013 2.75%
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bannedagain
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'Buy now or be priced out forever!'
I heard that in '89, again in '97, once again in '06 and now they're dusting it off again.
I heard that in '89, again in '97, once again in '06 and now they're dusting it off again.
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Unstated
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Buy now or be priced out forever!
Name withheld
TunaSnake
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Super tight inventory and frenzied buyers. How'd that
work out last time?
Name withheld
Paulus
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I love SFGate, sometimes. Comments worth
reading.
Brief story: My sister bought a house in a "rush", thinking she'd got a great deal. She had the "right" people look it over. Unfortunately, it was a dog, in several ways. So anyone who buys instantly is either an exceptional judge of construction, or is a complete fool.
And as to value? I asked someone in my family how her house could POSSIBLY be worth what the real estate agent said. I added the figures for the lot and the construction ... say ... a couple blocks away, where there was a vacant lot. Her house was easily 50% overvalued.
And the real estate agent's response? "There's nowhere else to build, prices will have to go up." Except, Mme. Real Estate Agent? Except? There were several vacant lots very close by. And huge acreage within 10 miles.
As a society, we REALLY need to stop this kind of speculation on what's the most basic need for a family.
Brief story: My sister bought a house in a "rush", thinking she'd got a great deal. She had the "right" people look it over. Unfortunately, it was a dog, in several ways. So anyone who buys instantly is either an exceptional judge of construction, or is a complete fool.
And as to value? I asked someone in my family how her house could POSSIBLY be worth what the real estate agent said. I added the figures for the lot and the construction ... say ... a couple blocks away, where there was a vacant lot. Her house was easily 50% overvalued.
And the real estate agent's response? "There's nowhere else to build, prices will have to go up." Except, Mme. Real Estate Agent? Except? There were several vacant lots very close by. And huge acreage within 10 miles.
As a society, we REALLY need to stop this kind of speculation on what's the most basic need for a family.
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Nubo
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Wow, was I in a coma for 5 years? What happened to the
impossibly huge "glut" of homes on the market? Wasn't that just a few months
ago?
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drocto
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It's been an open secret forever that the U.S. real
estate market is a great place to put criminal money, particularly from
overseas. We see the Chinese coming in droves and they don't care if they make
money on the property, they just want to get money out of China and into a
country with the rule of law. They also want a foothold in the U.S. for other
purposes.
This action is going to heat up further due to the situation in Cyprus. What, you ask? Well, when depositors in Cyrprus - a tax haven popular with Russian criminals - take a haircut, it's going to be a wake up call for criminals worldwide that their money may be less safe in little banks in little countries. It will make U.S. real estate relatively more appealing.
Think of it this way: You may lose a little bit in U.S. real estate, but a government could take much more in the blink of an eye somewhere else.
This action is going to heat up further due to the situation in Cyprus. What, you ask? Well, when depositors in Cyrprus - a tax haven popular with Russian criminals - take a haircut, it's going to be a wake up call for criminals worldwide that their money may be less safe in little banks in little countries. It will make U.S. real estate relatively more appealing.
Think of it this way: You may lose a little bit in U.S. real estate, but a government could take much more in the blink of an eye somewhere else.
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gfunk888
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Cypriots moving their cash savings.
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EqualRights
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If you take the last 75 years of changes in interest
rate, put it in Excel and then put in the last 75 years of
appreciation/depreciation, then make a chart, you make a startling,
discovery.
You find that there is no direct correlation between interest rates and home value.
It's counter intuitive. But try it.
Interest impacts affordability, not necessarily value.
Value is determined by more than just interest. Supply, demand, consumer confidence, location of the property, condition of the property, job security, the strength of other market variables, etc.
There are a lot more things that go into the value of a property than just interest.
You find that there is no direct correlation between interest rates and home value.
It's counter intuitive. But try it.
Interest impacts affordability, not necessarily value.
Value is determined by more than just interest. Supply, demand, consumer confidence, location of the property, condition of the property, job security, the strength of other market variables, etc.
There are a lot more things that go into the value of a property than just interest.
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TheDailyWorker
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Is Oakland seeing some of these 'flash' sales?
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Daily commentary on the nation's most diverse and unpredictable real estate market.By Anna Marie Erwert, Jenny Pisillo, Carolyn Said Read Bios
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