I published this exact thing on sfnewsletter today, but since it is a newsletter there is no room for discussion. Hopefully, we’ll get some here.
I recently submitted an offer for $425k on a Short Sale in SOMA (175 Bluxome #119). The “lender approved price” was $450k, but the sellers accepted our offer for $425k and we were waiting to hear back on the lender approval. Alas! Not to be. Another offer came in after ours for $450k and take a wild guess which one the lender accepted.
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On another occasion, some other clients and I found a $725,000 probate sale (I actually uncovered it prior to it hitting MLS, but the sellers were not willing to accept any “pre-emptive” offers) in Miraloma Park at 305 Juanita. We were one of seven, yes seven, orginal offers. I believe our offer price was $745k or so. The winning offer was at $780k and they could not perform on their deal, so the seller’s agent called us and asked if we’d like to be in contract at their price of $780,000 and hope to scare away any overbids in court. We said yes. The next minimum overbid price in probate court goes at increments of 5% of highest accepted price ($780k) plus $500, which put it to $819,500 and we all thought that price was not realistic for this house. Wrong again! There were three of us in court, and the property got bid up to $835,000 (After the initial overbid is met, the judge decides on increments and in this case went in increments of $5000.) So not only did my clients lose out, so too did six other buyers!
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The third story is a rather unique single family home at 195 Beacon, asking $1,650,000 (sold in 2007 for $1,650,000 not updated at all…ouch!) One week on the market, my client called, said he was interested, two days later it was in contract. We are in contract as “backup”, and there are four other parties behind us hoping buyer #1 falls out, and should buyer #1 fall out, they’re hoping we fall out. I’ll keep you posted how that one plays out.
I have so many more stories of despair to tell it is not even funny, so don’t go thinking the market is all THAT bad. It’s bad compared to recent years, but it’s certainly not awful. I do, of course have good stories to tell too, but we’ll save those for when they close escrow and keys change hands. ;-)
I’ve heard many short sale disaster stories and I have had no luck with them either. They can put a sour taste in the buyers mouths as well as the Realtor.
I was in probate court that day to observe the overbidding on Juanita Way as preparation to overbid on a house in University Terrace. Our court date was last week. We showed up and went to our max ($100k over the original accepted offer), but we were easily outbid by USF. We didn’t stand a chance.
…and the scary thing is that you are not alone! Did you see us sitting in the corner fuming?
I want to be invited to the house warming pool party!!
You guys in Cali have some of the coolest looking architecture and interior design.
305 Juanita is on one of the best blocks in Miraloma Park. I too, saw it before it went on the market and thought the $725K figure was way too low. I’m surprised it only got 7 offers at that price! It’s a beautiful home with great bones and with a kitchen/bath remodel would be stunning! Congrats to the new owner!
FYI – the client i had refereed did make a single offer, 10% under asking, which was accepted, closes in 2 weeks. Condo appraised at 15% over final price so zero issues on mortgage.