Monday, July 13, 2009

Yes Virginia, There Really are Multiple Offers

I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don't believe me, do you?
Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.

7 comments:

Philadelphia Real Estate said...

Hi, I am one of the owners of the Philadelphia Real Estate Blog. I was wondering if you think that the real estate market will turn around by 2010. Stop by and let me and my readers know. Thanks.

Philadelphia Real Estate Blog

Dean Rinker - RealEstateTidbits.com said...

Yes, with many properties, especially well-priced foreclosures, multiple offers are very common. The low-priced foreclosure market is today much like the broader market was just a few years ago: multiple offers and many frustrated buyers.

Minneapolis Apartment Guy said...

It's an interesting phenomenon. There are less people buying houses overall, and yet, there are multiple offers and many homes.

Very odd.

Statewide Property Inspections said...

As a home inspector here in Minnesota I can say homes are selling. Last week I inspected 13 homes. Work hard. Work smart. Be honest. Be yourself. And the business will follow.

TreeHouseForRent said...

What's happening there seems to be happening now across the U.S. as well.

Yalova Emlak├ži said...

It's an interesting phenomenon. There are less people buying houses overall,
Yalova Emlak

Staten Island Real Estate Agent said...

I'm seeing this by me as well. People feel that they should just put an offer in even if there is another offer higher. I kind of don't get some people.