Some of the more recent entries I’ve posted have been about real estate investing. More specifically, I’ve been sharing updates on my search to locate a rental property. In my last post, I mentioned that there was one additional open-house I would be attending. I took a look Sunday morning, and as it turns out, this property ended up being the most attractive (in terms of: price, appearance, quality, utility, etc.) out of all the units I’ve seen to date. The listing for this particular condo was again, well below current market listings for similar properties. I was informed in advance to expect to compete in a bidding war if I wanted to win.
Although I really wanted to emerge victorious, I stuck to my strategy and gameplan – I was determined to win on my own terms and not overbid! I did my best, made a reasonable offer, and still lost by a huge margin. This condo was listed at $250,000 and ended up selling $75,000 above the listing price. It sold for $325,000! Can you say, insanity? Even my agent was floored when he found out, as he was pretty certain we would be in the running to win. I guess I am not too surprised anymore (knowing how hot the housing market is at the moment), but these bidding wars are starting to get a little outrageous. Having already invested about two months into trying to find the right place, and not having much luck, I’m very close to deciding to postpone the search until further notice. The market simply needs to cool off a bit in order for the investment to be attractive.
The following is a link and infographic (Zillow) that puts into perspective just how in-demand the real estate market is right now, especially in Silicon Valley: