Lake Forest and Orange County, California Buyers: Tremendous Surge in Home Buying in the Last Two Weeks

Copper Cliff Dement FrontUPDATE—The market is moving at record speed.  In the last news letter, I advertised Dale’s SHORT SALE Country Club Condo across the street from the lake at $225,000.  We had 140 visitors and 10 offers by midnight of the Grand Opening Open House.  The offers went over $250,000.  With that type of demand, I showed my seller that we could probably put the home back on the MLS and specially market it as a STANDARD SALE for over $280,000 and ask the buyer to pay all of the SELLER’s closing costs and marketing fees.   To make a long story…short. We received 2 offers over this amount and entered escrow with one.  The home appraised at $282,000. The buyer got to buy a highly desirable NON-SHORT SALE property that he could close escrow on right away and the seller came away without a blemish on their record!

Copper Cliff Buanno Kitchen toward stoveRight after this home entered escrow I got a call from their neighbor who needed to sell his place as a SHORT SALE.  His lender is Wachovia.  That was the best news I could have heard as this bank has a no-nonsense approach to approving short sales.  I called the bank rep and she said to put it on the market and get an offer.  I priced it at $250,000 and had another Grand Opening Open house. It sold that same day to a couple who missed out on the first Country Club Condo.  We are in escrow now at $265,000.

Sailwind Condo KeithAt that open house, I met Steve —a dad looking to buy a single family residence for his son.  I went over the current dynamics of the market with him so that he would have an understanding that would help him be competitive in writing an acceptable offer.  A few days later we looked at the lowest priced SFR in Mission Viejo and decided against it.  I changed the search to include condos.  The Keiths selected their top three picks and we saw them on Friday.  One was in a community that, like so many others,  banks can no longer write loans on.  They would need an all cash offer.  Out of the two other condos, they decided on one right near the Beach & Tennis Club.  I called the agent and got all the information we would need to write an acceptable offer.  We wrote it up and delivered it to her front porch.  By the end of the day we were in escrow with a home inspection planned for the following day.

Rue de ValoreWhile all of this was going on, I got a call from a homeowner who saw the Country Club Condo (#2) sign and asked about it.  I told him how homes were selling the same day they came on the market.  Although he had the cash to buy a condo in this lake community last month, now, based on my two recent sales, he would need to look in a neighborhood that didn’t have attached garages.  I showed him the last listing in the city under $225,000.  We wrote a cash offer on this REO and are currently waiting for the bank’s response.  Although he wrote it over asking price, it was less than a non-cash offer.  Ask me when we talk what happened with this.

AspanDuring this same week my doctor asked me about a single family residence that he drove past.  I inquired about it and the Realtor told me that there were 5 offers on it and they were going to accept one that night.  This was one of the lowest priced SFRs in the city at $425,000. The doctor wanted to see inside immediately.  I asked the agent if she hold off accepting an offer to give us time to go inside.  Two hours later after viewing the home, I called the agent back.  She said that there were now 8 offers on it.  We put together an offer and had it to her by 9:30pm.  Our offer was accepted the following morning.  We had the home inspection the next business day and found that 45 more agents had taken buyers through the home.  Boy, that was a close call!

Just about everyone one wants to buy before the prices and interest rates increase further. Think what the month of May is going to be like when the $10,000 California Tax Credit takes effect!  If you are a buyer, talk to my lender right away so that your financial package is together.  20% down and higher buyers will have the best chance, so borrow from your folks or kids if you have to!  P.S. I will no longer represent bank robbers. 🙂

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