With prices in the South Bay becoming more affordable and interest rates at historic lows, more buyers are deciding that the time is now to purchase a home. In the current market many buyers are more focused on finding a "deal" than finding a great home. They approach me hoping to find these bargains that they've heard about and are concentrating solely on the foreclosure market. It's understandable as the news and headlines (as well as some sales pitches from realtors, internet companies, etc) are all touting finding these homes as a simple process and a get rich quick scenario. They make it sound simple to find a home and buy a home that's way below market value. So is this the best approach and is this the reality in the South Bay?
While searching for distressed homes can be a good way of finding homes that are priced well, the reality is that the homes that are priced well below market usually end getting bid up and selling for much closer to market value. I recently had a client interested in a 2 bedroom home in a great neighborhood of Gardena. The price was $284,000 which was a steal. My clients put in an offer of $300,000 and didn't get the home which eventually sold for $365,000 (which is no longer much of a deal!)
Buyers must keep in mind that they're not the only ones searching for these deals....and when they do come along it's often a multiple offer situation in which the home sells for way over they're asking price. So although South Bay REOs and short sales can be worth looking into, there are also a number of homes that are traditional sales with motivated sellers...and you may not have to compete with other buyer to get them.
Keith Kyle is a licensed Realtor and e-Pro with South Bay Brokers in Manhattan Beach. He serves his clients throughout the South Bay and his websites KeithKyleHomes.com and FindYourSouthBayHome.comoffer the most comprehensive real estate websites in the South Bay with free MLS access, current home listings, open houses, recent home sales information and more. Keith can be reached at 310-251-2344 or by email at info@KeithKyleHomes.com
