Burlingame Gardens Real Estate - July 2012

Some Sellers Receiving Well Above Asking

The Burlingame Gardens real estate market has seen a lot of eager buyers in 2012. The average sales price to list price ratio has been 103.9% in 2012, up from 96.9% in 2011. Although the ratio isn't perfect, in general, when it is above 100%, buyers are bidding above the list price and when it is below 100%, sellers are accepting bids below the list price. Although 103.9% might not seem like much above 100%, it is a hugely positive sign for sellers and portends future price increases.

Interestingly, even in this 'obvious' market, where it seems that buyers should write aggressive offers, it isn't so simple. There have actually been a couple of sales close to 90% of asking price, while others have gone for over 110% above asking price. A newly interested buyer in this market could mistakenly see some homes going for 110% above asking and put in a similar bid for a home on the market that would have eventually gone for 90% of asking, overpaying by 20% (or close to $200,000) in the process. Likewise, a seller seeing a nearby home go for 90% of asking price might accept a low ball bid, leaving 20% on the table. It can be hugely valuable to have someone who knows the local real estate market on your side.

There have been seven homes sold in the first seven months of 2012 in Burlingame Gardens, about in line with normal averages. Even with the recent positive price pressure, Burlingame Gardens remains one of the lower price neighborhoods in Burlingame, with average and median selling values under $1 million. One of the main drivers of lower selling values is the small average size home, under 1,500 square feet.

By The Numbers - Burlingame Gardens Real Estate for July 2012