Oct 23, 2008 11:54 pm US/Pacific
Bay Area Foreclosure Shoppers Facing Bidding Wars
OAKLAND (CBS) ―
The number of homeowners caught in the avalanche of foreclosure rose sharply this summer compared to last. As the properties pile up, so are the number priced below $200,000.
LaTrae Wilson thought itʼd be easy to buy a foreclosure property for under $200,000, but that was not the case. Starting in July she put down one offer and was quickly outbid.
"We tried five more times and with every one it got worse and worse and worse," said Wilson.
Realtor Sarah Arnold said it's a bit like the real estate boom. She is seeing homes going for $50-100,000over asking. But, that is mainly with lower priced homes listed at under $200,000.
"If the home is in a good location and good condition youʼll have competition," said Wilson.
Prices are listed artificially low to bring in multiple buyers. Itʼs the same tactic used during the real estate heyday. So unless the foreclosure home is trashed, expect a bidding war. Wilson did.
"It was $199. I said we should go higher and go for it because others are outbidding me," said Wilson.
About $20,000 over asking sealed the deal. Sheʼs in escrow.
"I close in 2 weeks and its mine so Iʼm excited," said Wilson. "I own a piece of the amercan dream now."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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