Remember the house on Westfall Road in Lancaster that we featured a couple of weeks ago?
It was listed for $72K, way below market value. With retail values of similar homes in the $160K range, it seemed that HUD forgot to add a “1″ in front of the purchase price.
This is a huge, 3,000 sqft, new house with hardwood floors, stainless steel appliances, a large attached garage and a pole barn in the yard. It sits on a 2 acre lot, just a few minutes from the amenities of a large city!
As expected, the low asking price generated a lot of interest in this home. There were more than 40 showings during the initial 10 exclusive period. By the deadline, HUD had 30 offers on the house.
Now this home is in contract.
The winning bid was $115K, that’s 50% higher than its list price.
What can you learn from this Bidding War?
If you are a seller and list your house below its market value, you will generate a lot of interest. This is true in any market, even in today’s economy. It is especially true, if the house is in good condition.
You will receive more offers! And as the seller you can pick the one that’s best for you.
Keep in mind that there’s a buyer for every home – if it’s priced right.
One more trick that’s been used by many REO brokers (but not by HUD): if they receive more than one offer, they call all bidders and ask for a best and final offer. Usually, they will squeeze out another couple thousand bucks for the seller.
If you are a buyer, don’t despair! Despite all the activity, the 30 offers, and the overwhelming competition, the winning bidder still got the house for almost 30% below market value. That’s $45,000 in immediate equity!
What a great deal!
