(Another) Foreclosure Feeding Frenzy

Home Focus: 38xx Harriet Ave. (South Mpls.)

What: 2 BR/2 BA; 1,364 FSF in South Minneapolis' Kingfield neighborhood
When: On market 4/17/09; closed: late May
List Price: $75,000
Sold Price: $91,000
% Over List: 21%

This home sold for $91,000 -- a mere 21% over asking price. I was told that there were at least 8 offers on this home within 2 days.

Lots more of these deals are in the pipeline, because they came on the market earlier this Spring, and are just closing now.

Based on what I saw, I wouldn't be surprised to see at least a few bank-owned foreclosures that fetched 50% over asking price (imagine telling your client what the asking price is, then telling them what they likely have to bid to actually have a chance of getting the property).

I'm also hearing that Seller bad behavior is -- surprise, surprise -- begetting Buyer bad behavior: namely, the best way of winning one of these "real estate lotteries" is to buy lots of "tickets" (submit offers on multiple properties simultaneously).

As a consequence, the fall-through rate on these deals apparently is astronomical.