Tuesday, September 29, 2009
Something stinks in LA REO brokering.
After another night of licking my wounds from trying to get my buyers houses, I took a look backward to see where all of these ludicrous bidding wars are ending up settling at. I became more than a bit disheartened when I saw a particular listin on 4674 Toland Way 90041. I have special affection for this property because I wanted it and made a very attractive offer for it. It is a beautiful 3+2 with a massive yard in a great section of Highland Park. It was listed for $319,000 on 7.20.09. We offered $355,000 with a 25% down payment on 7.24.09. We were told that our offer "met all of the seller's criteria" and was in the running. Like so many other offers, this one was never consumated into an escrow. We were told on 8.4.09 that the seller had taken another offer. We later discovered that the seller had taken an offer for $340,000 with only 20% down payment. Why would any seller take a lower offer with less of a downpayment? It just does not make sense, but it is on track with the summer of 2009 wild west real estate market in Los Angeles. I for one think that something illegal is going on with the listing broker. It seems that every time an REO comes for sale in our area that is over bidded on and one or more of my buyers is involved, the final selling price ends up being lower than what my buyers bid. What is happening over there in Glendale?