At the bottom of each real estate listing, the website Redfin includes feedback from agents who have recently made offers on nearby properties. The agents' comments are brief and lack precise detail, and are by no means a scientific study of current market conditions. But if you want to a glimpse into the dark heart of a real estate feeding frenzy, it's a good place to start.
-- Did you hear the one about Highland Park being America's up-and-comingest neighborhood? So did everyone else. From an agent whose client offered 133 percent of the asking price on a 1,000-square-foot house: "Home was listed about $100,000 below market value, so the seller received 60 offers."
-- In Silver Lake, the cash buyers are fighting amongst themselves. A buyer who competed with 22 others on a 750-square-foot house thought he had a slam dunk, but didn't. "Buyer came in with all cash more than 25% over the list price 17 day close, 14 day inspection, only to find out the winning bidder came in substantially higher with no contingencies and a quick close." The house was a fixer and went for more than $700,000.
-- And then there's the hail Mary offer on this $1.5-million house in the Palisades: "This property has been in and out of escrow. Due to the history my client thought he could submit under asking. They received multiple offers over asking and sent us a counter anyway, but my client was at their max and just wanted to try despite how active the market is in this neighborhood." It didn't work.
-- But let's go to Studio City and end on a happier note with a buyer who actually bought: "A Bio was sent to the listing agent prior to touring property. While on the property the the listing agent noticed the excitement the buyer had for the property." Sending a resume and emoting on command? Uh, is homebuying starting to sound like another industry we're famous for here in LA?
· Redfin [Official Site]
· State O' the Market Archives [Curbed LA]