Monday, July 2, 2012

Lack of Inventory Causing a Buying Frenzy!

Last week I closed escrow on this Glendale Adams Hill duplex. My buyer was an all cash buyer and we were able to close escrow in 5 days. We wrote the offer with no contingencies and the buyer allowed the seller to leave behind any personal property that he did not want. 

During that week I wrote 2 offers for my Pasadena buyer who is looking under for a home under $400,000. My buyer was outbid by an all cash buyer on both homes. Although my buyer offered more money than the all cash offer, the seller still chose the all cash offer. Why would a seller choose a lower offer? Currently in real estate market we are facing appraisal problems that is causing homes to fall out of escrow. The seller decided to skip the hassle of inspections, loan and appraisal problems and accepted the lower offer with a shorter escrow period.

Right now with the lack of inventory there is a buying frenzy. It is more common to see homes selling in multiple offers over asking price. There are currently only 30 homes for sale under $400,000 in Pasadena. Of those 30 homes, only 9 of those are standard sales!

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