1862 15th Avenue

Multiple offers are back! Today a house at 1862 15th Avenue priced at $849,000 received 5 offers. 3 of the offers were countered at $900,000 and the seller accepted one from a buyer who offered to remove all contingencies within 5 days. The key to this deal was that the buyer is going through Wells Fargo for their loan and Wells Fargo is now offering a ‘rush’ appraisal for an extra $200 that sends the appraiser out on the weekend to look at the house. The appraiser in this instance is going out on Sunday to see the house.

I attended a regional meeting for Alain Pinel Realtors in Marin on Friday where the East Bay was discussed because in that market they’re receiving 15 to 20 offers on certain properties. In these instances, the listing agents are going back to the buyers with terms that compel the buyers to come up with more cash if the property doesn’t appraise.

Individual lenders are slowly dipping their toes back into market segments they had previously abandoned. Wells Fargo announced this week that they are back in the ‘Super Jumbo’ loan market in a big way. Previously ceding that market segment primarily to 1st Republic Bank, now Wells is muscling back in to take back what is probably the most profitable loan market to higher net worth individuals along with all the other ancillary services that go with those customers.

Lenders’ gradual loosening will support this market trend in a real estate market that overall has a shortage of inventory. As the economy slowly improves, so does the investor psyche and the appetite for risk. This is on top of a hoard of cash that has been accumulating over the last 18 months as folks sat on the sidelines waiting for a signal.

I have buyers in all price ranges up to $3million and I’m seeing the best properties fought over at every level.

I’ll keep you posted…with more to come.

All the Best,

Lance

415-793-6140