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Following is more empirical evidence of how strong the market is at the lower end (for Orange County) of the market for single family properties. While working with a very motivated buyer this past week, we saw a property come up in Dana Point that met the buyer’s criteria. Just two days on the market, we went to have a look.

The property had recently been purchased as a foreclosure at auction for $460,000 and had been refreshed to appeal to a wider audience. By refreshed, it appeared the current sellers put travertine and new fixtures in the two bathrooms, granite counter tops in the kitchen, replaced the kitchen appliances, painted the existing cabinets , painted the walls and put on a new asbestos roof. Our guesstimate was that they invested about $25,000 of repairs. The home was offered at $579,900.

The buyer fell in love with the property and instructed us to write an offer at $550,000. While writing the offer, we contacted the listing agent to find out if there had been any other offers presented. She told us yes, and that two of them were above asking price. We asked if she felt they were strong, qualified offers to which she again answered yes. A little more prodding provided us with the knowledge that in order to even be in consideration, we would have to offer above $600,000, which was more than our buyer was able to spend.

This suggests several things: 1) At this price point, nice homes priced at today’s adjusted levels attract multiple buyers within days of being placed on the market; 2) Investors and “flippers” are back in the market in force. We are competing with cash buyers in almost all scenarios when we identify an attractive property below or around the $600,000 mark; 3) If you are a potential buyer for a property in this price range, chances are if you like a property, so will another potential buyer, so act swiftly and decisively to get your offer accepted. Oh yeah, and work with us to guide you through the process successfully.