Bidding war in SF east bay area

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Bidding war in SF east bay area

David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes

Just offered for a friend on a run down SFR in fremont's nile district.

37286 3rd St. Fremont

List price: $750K

His offer: $869K

This house (1500 sf) needs complete rehab, and is right next to a school.

Here is the response from the listing agent.

Offers received in total, 28.

3 offers over 1 million dollars

3 offers 950-1 million

2 offers 900-950

13 offers 850-900

3 offers 800-850

3 offers 750-800

1 offer under 750


Mass exodus from CA? Are you kidding me?

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Most Popular Reply

Cherisse B.
Member since 2020 · 27 posts · 27 votes
5y

I literally just made a post about the Miami Mayor billboard in San Fran. Miami may be clean across the country, but it could be the next frontier. (Maestro cue, "Bienvenidos a Miami" by Will Smith!)

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    2Reply
  • AJ Smith
    Rental Property Investor · Oakland, CA · Member since 2020 · 11 posts · 15 votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

    40,000,000 (11% of the US population) must be complete idiots to want to live here. There’s a reason why that mansion in Ohio is $800K. It’s because the land is not worth much. And it’s also because not many people want to live there. Or it would be selling for much more. More than replacement cost? 

    By the way, I’m wearing shorts today. What about you?  

    2Reply
  • AJ Smith
    Rental Property Investor · Oakland, CA · Member since 2020 · 11 posts · 15 votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

     $800,000 in California. 30 minutes from San Francisco. Can you get Burmese food delivered in Hilliard, OH? 


    https://www.redfin.com/CA/Conc...

    2Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    Let’s just say houses are dirt cheap in city xyz for a reason. It’s always like that. Always!!!!!!

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

    40,000,000 (11% of the US population) must be complete idiots to want to live here. There’s a reason why that mansion in Ohio is $800K. It’s because the land is not worth much. And it’s also because not many people want to live there. Or it would be selling for much more. More than replacement cost? 

    By the way, I’m wearing shorts today. What about you?  


    I would say over 11% of the US population are idiots.

    I am wearing sweatpants looking at these beautiful ice diamonds. No ice diamonds in California.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Derrick Dill
    Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes
    5y

    I bought in January 2021 in East bay. Put in several offers on several properties. My "standard" offer was 50k above list. Properties were gone within days 50k+ above list. Took me 6 months to get a property above list that needed work.

    Mass exodus out of California to frozen tundra in Texas though

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

     $800,000 in California. 30 minutes from San Francisco. Can you get Burmese food delivered in Hilliard, OH? 


    https://www.redfin.com/CA/Conc...

     No, but you can get Cane's Chicken.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    5y

    @Remington Lyman

    You got a point there Canes might be better than a cardboard box. Need to start righting that in to my deals contingent upon a canes box combo at closing for buyers agent and buyer.

    [email protected]614-412-4565
    Reafco-557 Reviews
    View Page
    2Reply
  • AJ Smith
    Rental Property Investor · Oakland, CA · Member since 2020 · 11 posts · 15 votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @AJ Smith:
    Originally posted by @Remington Lyman:
    Originally posted by @David Song:

    Just offered for a friend on a run down SFR in fremont's nile district.

    37286 3rd St. Fremont

    List price: $750K

    His offer: $869K

    This house (1500 sf) needs complete rehab, and is right next to a school.

    Here is the response from the listing agent.

    Offers received in total, 28.

    3 offers over 1 million dollars

    3 offers 950-1 million

    2 offers 900-950

    13 offers 850-900

    3 offers 800-850

    3 offers 750-800

    1 offer under 750


    Mass exodus from CA? Are you kidding me?

    You could buy a block of homes in Columbus, Ohio for that money

    You get what you pay for 

    $800,000 in California:

    $800,000 in Columbus, Ohio - Follow this link to see the page:

    https://www.flexmls.com/link.h...


    This link is valid until 3/23/2021.

    40,000,000 (11% of the US population) must be complete idiots to want to live here. There’s a reason why that mansion in Ohio is $800K. It’s because the land is not worth much. And it’s also because not many people want to live there. Or it would be selling for much more. More than replacement cost? 

    By the way, I’m wearing shorts today. What about you?  


    I would say over 11% of the US population are idiots.

    I am wearing sweatpants looking at these beautiful ice diamonds. No ice diamonds in California.

     Got those too. And Popeyes is better. 

    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Wait, what???!!! Do you say a run-down SFR? 

    WOW 😳 

    0Reply
  • Jason P.
    Investor · Bay Area · Member since 2020 · 42 posts · 19 votes
    5y

    @David Song

    It’s nuts. We are looking at buying a new construction and have found some nice ones for $700,000 and we are on a list of 100+ for 15 houses. We even went as far as Lathrop and same thing. Wait lists are crazy long.

    2Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    Don’t forget the fundamentals that are driving these prices up.

    1) Sky high stock prices for tech stocks

    2) More IPO and wealth creation than in recent times

    3) Record low interest rates

    4) Migration from SF to suburbs

    5) Continued inflow of highly paid professionals for new tech jobs

    Those are the drivers! Most of them very unique to the Bay Area.

    3Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y
    Originally posted by @Jonathan Yan:

    Thank you for your post David. Very Insightful

    Just sharing some real experience, and vent a little. LOL.

    2Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y
    Originally posted by @Derrick Dill:

    I bought in January 2021 in East bay. Put in several offers on several properties. My "standard" offer was 50k above list. Properties were gone within days 50k+ above list. Took me 6 months to get a property above list that needed work.

    Mass exodus out of California to frozen tundra in Texas though

     LOL. Congratulations on getting a deal. Now its standard 100K above list. 

    2Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y
    Originally posted by @Jason P.:

    @David Song

    It’s nuts. We are looking at buying a new construction and have found some nice ones for $700,000 and we are on a list of 100+ for 15 houses. We even went as far as Lathrop and same thing. Wait lists are crazy long.

     This is similar to 2018, where young people wait in long lines to get into a sales office of a new development in Newark, CA. 

    1Reply
  • Jessica Santiago jones
    Lender · Jacksonville, FL · Member since 2014 · 32 posts · 13 votes
    5y

    @David Song I’m in Northeast Florida and houses are flying off with multiple offers within the first 6 hours of being listed!

    1Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    @Jessica Santiago jones

    That’s awesome! I hope that south Florida continues to grow. It’s an awesome place. In fact I hope every part of the US sees positive trends in 2021.

    Clearly from a Bay Area stand point the stats presented by @David Song and well substantiated by other local investors prove that the clickbait “exodus” articles were not exactly that factual and the Bay Area continues to boom.

    I think as the pandemic dissipates we will see a coiled spring effect on city traffic, tourism, return of expats, students and professionals.

    This is going to be awesome. I do think we will continue to see some out migration but the inward migration will be huge in coming months.

    2Reply
  • Cathryn Sta
    Investor · San Francisco · Member since 2020 · 39 posts · 28 votes
    5y

    This is happening in Boise, ID too. It makes me wonder if it’s a nationwide problem?

    1Reply
  • Hayden H.
    Flipper/Rehabber · Emeryville, CA · Member since 2017 · 58 posts · 50 votes
    5y
    Originally posted by @Brian Garlington:

    Sometimes a little kindness goes a long way.

    We're in contract on a triplex in East Oakland. Each unit is a 2/1 and all three units are occupied with month to month tenants.  

    Buyer needs it as a primary residence as her loan states,.... her intent is to house hack. 

    Asking was 849K and it needs a little cosmetic work. 

    It had 8 offers.

    We were the 3rd highest offer at at 957K. Interestingly, none of the tenants wants to move out and of course they can't be "forced out" at this time due to everything going on.  

    There was an appraisal contingency and inspecton contingency and quite frankly we were shocked when we got the call from the listing agent. The buyer was very personable during the walk throughs, met all the tenants and they seem to like her. She has identified the unit she will use as her primary residence once she is able to move in and she is very insistent on this.   

    At present with all three units rented out, It literally meets the 1% rule! Yes it is in a "up and coming, blue collar, in a working class neighborHood" in East Oakland but she has no qualms with living there when she is able to move in. 

    @Brian Garlington, a triplex in east oakland that is being bought for 975k rents for 9.75K a month? I find it a bit hard to believe.

    2Reply
  • Alexander Castro
    Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
    5y

    I'm on the East Coast of Florida & it's insane. I purchase a home back in March & it has over $40k in equity.

    1Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    @Alexander Castro

    As long as it’s residents vs speculators like 2008, we will all be ok!

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    5y

    Some other interesting thing about this bay area market:
    1. More expensive houses don't mean a good school district and healthier living conditions. Sometimes, the more expensive, the crapper it is.
    2. Bay Area is very culturally concentrated which cause a different problem: some group of people from a different kind of job and background doesn't want to live in specific zip code, vice versa; but they're all appreciated nicely. I think the basic psychology problem is everyone from the same consciousness has a similar thought process: they're working for the same company and they're buying/renting in the same neighborhood. For example, all the engineers are willing to bid up houses in Mt. House, maybe Brentwood is next. 
    3. Currently the neighborhood that the majority is not speaking English also has 1 million appreciation, it causes an issue because there's too much cap rate compression. The gap between income and rent is too high. We can't raise the rent too much because the income will not match. We can't sell it because the tax is too high. In the end, only refinance is making sense. 
    4. All new construction can only build a class A house that has 3-4 stories as the land is too expensive. It becomes a new "Hongkong" with a very bad layout and actually, only engineers-immigrants are willing to pay handsome money for that house.  20 years ago, nobody likes to buy a house with a 4 story. Even the office building only has 4 stories.
    5. What's funny is, there's still vacated office building from the dotcom area. 
    6. Many property owners in Mt view are older folks that can no longer afford the mortgage if they're paying it now. It's very expensive for them to live here but they also have nowhere else to go, except probably moving out of CA or move to cities like Pittsburgh,Brentwood,Oakley,etc...
    7. People from Oakland move out too mostly to Stockton/Sacramento/delta area and creating new affordability issues everywhere.

    1Reply
  • Kevin Kohler
    Real Estate Broker | Investor | Property Manager · Plantation, FL · Member since 2015 · 228 posts · 69 votes
    5y

    @David Song things like this are happening in a lot of markets. It's a two-way crush of low interest rates coupled with historically low inventory so it I have seen people summarize it as both a buyer and seller market...it's definitely bonkers out there.

    2Reply
  • Cherisse B.
    Member since 2020 · 27 posts · 27 votes
    5y

    @Carlos Ptriawan, great point regarding the median incomes in Miami; however, keep in mind that remote working is giving people with larger pockets (from other major US cities) the flexibility to work wherever they want to. 

    Miami looks really appealing after long winters in hibernation after quarantine, and we're already seeing the jump in competition and price points. So it may not be financially accessible for many locals, but it certainly is feasible for transplants with flexible jobs.

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    5y

    In the eyes of remote worker of a software engineer in Bay Area, relocating to city two hours from Bay Area actually makes more sense rather than moving out of state. They can live in city like in Manteca,Modesto or even Merced. There're two advantage: they can still come to office if needed (many office offers 2 days coming to office per week) while they still get nice comfortable California house with very large backyard and of course appreciation :) If they move out of state, the company will cut their salary. In city like Manteca , Modesto , Merced they can start having house with 300k.

    Actually the biggest problem why software engineer hates to leave Bay Area: if something happen to their company, it's hard to get the next job because there's not that many tech industry available. In Bay area, if by tuesday you get laid off, wednesday you can get a new job offer ( of course if they're good). 

    2Reply
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