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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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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  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    5y

    Once covid calms down there will still be boots on the ground networking and being in the area that a concentration of tech jobs will always be an up leg.Tech companies will adjust salaries etc for out of state  living and if they loose their job relocating and uprooting a family gets complicated . The Bay Area is poised for a huge leap with bio tech etc. just my 2 cents .

    [email protected]
    0Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    Remote work is a joke! If it’s going to really take off then people better be scared because those jobs won’t likely stay in the US. They will be shifted offshore quickly. I think we will go back to more face to face and in office ways of working. I think the SF area will see a surge in incoming population exceeding past trends.

    2Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    A colleague of mine had a buyer that offered on a house in Concord, Ca a couple of days ago. That house received 81 offers!!!! The winning offer was more than $200k over list. Let that sink in. 

    3Reply
  • Account Closed
    Santa Clara, CA · Member since 2018 · 100 posts · 71 votes
    5y

    Living in the Bay Area is very difficult with its high cost of living, high mortgages, cut throat competition in the workplace, working long hours. But I think this adversity brings out the best in people to do something truly cutting edge. Bay Area has always been expensive to live and yet it has the most successful tech startup ecosystem & Big Techs on the planet. 

    I really don't know how motivated people would be if life was cozy with a low or paid off mortgage, low cost of living. We might have some short term headwinds but I feel long term prospects are very good. 

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    5y

    These are the real story of who can buy house in Palo Alto,CA or Mountain View. It's the area of my soccer league so I knew personally many of them (PAASL league).

    During 1990s, the one that bought in this area is usually NASA Engineers or Lockheed.
    In 1995, a Netscape guy started buying property in Palo Alto, house is still around 400k
    In 2000, an engineer from Cisco Systems is buying these property, house is around 600k
    In 2005, Facebook tech leads or guy from Intuit is buying these properties.
    Coming 2010, Google guys buying Palo Alto/Mountain View property during The great crisis, usually there're about 100 offers on the same house, price is around 900k at that time.
    2015, okay Netflix guys is buying Palo Alto homes along with their Palo Alto Networks engineer friend. Price may be 1.4 mil.
    Now 2020, Tesla engineer, Nio engineer, Google, FB, netflix chasing the same house, now costing 2.5 million
    2025 maybe Quantumscape engineer is buying the same house. The NASA engineer left out and has to move OOS or move to Brentwood.

    It's just endless wealth creation in Bay Area. Now you know why Concord house has 81 offers on them :)

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

    @Carlos Ptriawan

    Very well put. Not to forget the small companies that got bought out and created wealth for founders and vcs. Also other companies like Apple, PayPal, Palo Alto networks, nVidia.

    0Reply
  • Salomón Mora
    Real Estate Agent · Sacramento, CA · Member since 2016 · 7 posts · 2 votes
    5y

    @David Song something similar is happening in Sacramento. Although I have seen houses selling over asking price (max $50,000 on the listing price) I have not seen something like your case in Fremont! Let’s see what happens during summer.

    0Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y

    @Salomón Mora It appears that March and April sales figures will break record. January data is out, 20% year over year increase in Bay Area medium price, and all over ca. When Feb pending properties got sold in March, the data will not be out until May. But that figure will likely be huge. 

    1Reply
  • Salomón Mora
    Real Estate Agent · Sacramento, CA · Member since 2016 · 7 posts · 2 votes
    5y

    @David Song, I agree with you. I have to check the numbers here in Sacramento and make the respective comparisons. Great point!

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

    One thing that I don't understand is, there're remnants of office buildings from dotcom 2001 era crashes still available (office/door/gate locked since 2002) around Mathilda very near to the new Google/Baidu office. There's bunch of vacant offices too in Great America near the ex 3com building. I don't know why nobody moves there or why the owner doesn't sell the property.

    0Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    @Chin Chico

    If it’s everywhere I worry! Worst of that is being driven by speculators vs residents. But I would concede that millennials are entering their 30s and 40s. They may well be driving the demand.

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

    If there was one thing that could put a halt to real estate Boom -what would be your guess?

    .... If I see past history and previous chart, the real estate crash will occur when:
    1. The tech company and jobs are moving overseas completely
    2. The gov. stopped the immigration

    It's basically about the people. The STEM people is the golden egg that creates the wealth and support the nation. Just look at a country like south korea, 50 years ago is still in the middle of civil war but now the country is progressed so much due to tech industry.

    0Reply
  • Ben HowardPro Member
    Real Estate Agent · El Dorado Hills, CA · Member since 2017 · 160 posts · 67 votes
    5y

    @David Song

    This week I had the following response to a $499,000 Folsom, Ca listing where I represent the seller:

    101 Prisser Way

    196 Agent 15 Minute Showings

    79 Offers Were Submitted

    7 Days On Market

    AS-IS Home That Needs Repairs

    The number of buyers looking in the Sacramento, Ca region is remarkable. Areas such a El Dorado Hills, Rocklin, and Roseville have also seen significant buyer interest. There are great schools, significant income, minders infrastructure, and an overall demand for smaller communities vs the Bay Area.

    [email protected]916-390-7060
    0Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y

    @Ben Howard that is amazing. What is the offer price range ? What kind of buyers are you seeing? 

    0Reply
  • Monique Munoz
    Member since 2020 · 15 posts · 13 votes
    5y

    @David Song I believe it at that price for that area. I’m curious to know also what kind of offers were submitted and the ultimate price paid. I’m in Rocklin!

    0Reply
  • Ben HowardPro Member
    Real Estate Agent · El Dorado Hills, CA · Member since 2017 · 160 posts · 67 votes
    5y

    @David Song @Monique Munoz I can't disclose the details of the offers, but there was significant demand over $600k. I have one primary offer and four very solid backup offers. An ARV on the property could be $750k depending on what someone does with finishes and landscaping of the 1/4 acre lot. 105 Vierra Cir down the street is model match on a smaller lot/busier street was $749,900 and now is $729,900 and 16 days on market. Yes, believe it or not, there are actually price reductions in this market...

    [email protected]916-390-7060
    0Reply
  • Fernando E.
    Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes
    5y

    @David Song very timely post as I’ve been hearing this mass exodus from the news lately. As a subject matter expert in the Bay Area location, what is your opinion about where to buy a home in the Bay Area if you plan to raise a family here? My best friend with a young child is talking about buying a $1.4M house in San Ramon, CA indicating that the school district and continued appreciation will make it a good buy now. My friend makes good money and plans to do 20-30% down, which still makes me uncomfortable with his decision. I appreciate the input.

    1Reply
  • David Song
    OP
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y

    @Fernando E. Where to buy depends on your work location, and personal preference. Anywhere close to your work location is fine. For investment, I am currently focusing on the peninsula and far away areas along 580 east, including Livermore, Tracy and neighboring areas. Hayward is also a focus, but the price is a little too heated.

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

    @Fernando E. Where to buy depends on your work location, and personal preference. Anywhere close to your work location is fine. For investment, I am currently focusing on the peninsula and far away areas along 580 east, including Livermore, Tracy and neighboring areas. Hayward is also a focus, but the price is a little too heated.

    Agreed. I believe Hayward is positioned in a fantastic location, just a bridge ride away to high paying Peninsula jobs.  

    2Reply
  • Fernando E.
    Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes
    5y

    Thanks @David Song and @AJ Smith! I appreciate the input 

    0Reply
  • Adrian Chu
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    5y

    Bidding wars are everywhere. Some Seattle area properties are getting 60+ offers.

    0Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    Bidding wars in the recent past used to be mostly around large tech hubs.

    Now they are everywhere! Small cities, smaller states, larger states. Last time we saw this was in 2005 - 2007 until the market collapsed.

    My only hope is that banks are indulging in solid underwriting standards and not giving away loans like they used to before the great financial crisis. Overall broader home ownership - on the right lending terms - is a huge driver for economic growth. Hot market is a good thing but it can be a precursor for the next bust.

    1Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    5y

    Yip, this is a little crazy . Record low interest rates, lack of inventory at the best of times ( covid ) and many Silicon Valley companies IPO about to let loose!!!

    [email protected]
    0Reply
  • Adrian Chu
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    5y
    Originally posted by @Justin Thorpe:

    Bidding wars in the recent past used to be mostly around large tech hubs.

    Now they are everywhere! Small cities, smaller states, larger states. Last time we saw this was in 2005 - 2007 until the market collapsed.

    My only hope is that banks are indulging in solid underwriting standards and not giving away loans like they used to before the great financial crisis. Overall broader home ownership - on the right lending terms - is a huge driver for economic growth. Hot market is a good thing but it can be a precursor for the next bust.

    Part of it has to do with the government printing money. There is a lot more money in the system these days.

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

    @Adrian Chu

    Sure but unemployment is high and small business activity had stalled. So it’s not like everyone has jobs and money. I think demographics of millennials reaching their home buying years is kicking in along with low interest rates.

    2Reply
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