Great post. We’re working on properties in the greater Phoenix, AZ metro area and similar circumstances are occurring. In Sacramento, CA, again, similar circumstances.

The one thing that we’re finding as we resell our remodeled properties is that many perspective buyers and even some Realtors, don’t have these homes comped correctly. Sometimes way to high. Other times, way to low. In fairness, comps are difficult to obtain right now as banks are slashing values quickly.

In certain, higher demand areas, we’re price aggressively knowing that there will potentially be multiple offers as our home is remodeled and priced like an REO or short sale but, will be more attractive because of it’s condition and the fact that it’s a “normal” purchase without all of the hoopla.

In other areas, higher inventory locales, we can be priced just as aggressively but, buyers will still want to come in 10-15% below value. Almost regardless of price point, this is the case.

Working with contacts throughout the country, we’re noticing that many of the overheated markets have a lot of investor interest on the right property in the right area. On these homes, as you have stated, multiple offers rule the day.

I believe this is a trend that will continue as the stock market will most likely remain volatile and investors will want to put their money into a safer investment. In CA, as you know, many of our markets peaked as far back as July / August of 2005. Since then, prices have been falling fast and sharply in many of these markets.

Unless investors, as you state,”remove gold bullion” or stash “money under the mattress from the safe haven equation”, real estate is slowly becoming the investment of choice again. There are still issues to work through but it’s hard to see how you can go wrong if you are buying at an additional 20-30% discount from today’s true market value.

I was very impressed by your article…It is detailed and really great writing.

I have been running wild with changes this month. Gave up management for real estate sales….great idea and now to put away all this stuff from my office move….

Elaine Carlson