If you’re looking for a home in the Bay Area, you will probably need two things on your side: luck, and a lot of cash.
Those who aren’t willing to compete with up to dozens of other offers on a home are now trying to buy it – hours after it’s listed on the market.
The new trend has been dubbed by realty experts as “flash sales” – any sale that happens within 24 hours.
For example, a home in East Palo Alto on Gates Street was put on the market on March 19. It got nine offers the same day and sold for above asking price within 24 hours.
Glenn Kelman, CEO of online real estate brokerage Redfin which is set up in 19 U.S. markets, said that trend is growing in the Bay Area and calls it “Ground Zero” for an incredibly hot housing market, one that experienced an incredible boom at the start of 2013 in January.
I hate to be the kind of person who brags, but… well… told you so.
Oh, I forgot. We’re in the Bay Area. I need to humble brag.
I’m so amazed and honored to be proven right.
The Bay Area is back, baby. It’s Ground Zero!
Just how special?
Ken DeLeon, a realtor, said his latest listing is a 1200 square foot home in Palo Alto that he just put on the market Thursday. “The amazing part is just within 24 hours, we already had a client with a Chinese all-cash buyer offer us more than 300,000 above and we said, ‘No thank you, please wait,’” DeLeon said.
He and other realtors said they’re still catering to those wealthy foreign buyers, mostly from China and Russia; however, with historic-low mortgage interest rates and an inventory that’s also hitting record lows, they said the competitive cash offers are no longer limited to the high-end homes.
Hey Realtors – I gotta tip for you: Price the house in RMB. Why? There’d be even more opportunities to add 8’s to the price!
“There are sometimes traffic jams outside open houses,” said Kelman. “Folks get worried they can’t wait for the offer deadline on Sundays, so they make a preemptive strike to try and buy it on the spot.”
Forget waiting 3 hours to eat brunch at Mamas, or camping out 3 days to enroll your kids into pre-school… now you have to camp out a week to attend a open house.
Hold on for a sec.
I had to get a kleenex.
The tears won’t stop flowing.
This is so beautiful.
The Bay Area is back. Better than ever.
This is the year where the $ per square foot in the Real Bay Area will beat the average $ per square foot for Manhattan. You heard it here first.