Multiple offers: the latest 'M.O.'?
By Glenn Roberts Jr., Tuesday, July 28, 2009.
Flickr image by soundman1024.
Multiple offers on for-sale properties is the modus operandi in some housing markets these days. Inman News columnist Tara-Nicholle Nelson wrote this week, "in the last couple of days, I've seen another 30-offer listing and a bunch in the seven- to 15-offer range. The level of buyer activity has gone from zero to 1,395 in the blink of an eye.
"(And I've asked around -- my colleagues in other markets are seeing the same multiple-offer phenomenon, although perhaps not to quite the same extremes.)"
In a separate report, California Association of Realtors Chief Economist Leslie Appleton-Young stated that "many distressed properties" are "receiving multiple bids."
Nelson suggests that the looming expiration of the First-Time Home Buyer Tax Credit may have something to do with the rush of offers.
Are you seeing multiple offers in your market area? Tell us about it. And tell us what factors you think are driving the multiple offers. Who is making these offers? First-time buyers? Move-ups? Investors? And what types of properties seem to get the most offers these days.
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Submitted by Ki Gray on July 28, 2009 - 3:44pm.
We are seeing multiple offers in Austin But they never seemed to go away. Not that the austin real estate market didn't go down but firesale priced properties usually get multiple offers even in a weak market. We have seen an uptick in activity with the lowered rates. I am just worried that if rates go up we could have problems.
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Submitted by Ginny Enbody on July 29, 2009 - 3:42am.
There are few foreclosures in Cambridge, MA and some surrounding locations so there's no fire sale going on. Low inventory is driving multiple offers as well as first time home buyers looking for a tax credit and getting into the Cambridge market where prices had gone outside the stratosphere but now reflect in some ways the mood of the nation.
Submitted by Joe Loomer on July 29, 2009 - 5:33am.
We have the "Tale of Two Counties" here in Augusta, GA. Flipped foreclosures in exceptional condition and priced below market can expect 2-3 offers, but a multiple offer scenario is not the norm.
A more signficant phenomenon in our market is the "Reverse Offer." List agents - at least those with the training and expertise - present Buyers Agents with offers from Sellers. This is a great tool to motivate Buyers who are fence-sitters waiting on the "next great deal." If the feedback was great, the Seller can offer a concession on price or closing costs vs. what is offered in the MLS, and it can serve to motivate Buyers to at least counter.
Augusta GA Homes
Navy Chief, Navy Pride
Joe Loomer (USN Ret.)
Associate Leadership Council, Growth Chair
Keller Williams Realty Augusta Partners
Submitted by Travis Bohling on July 29, 2009 - 3:58pm.
We here at Brewer Caldwell are seeing a multiple offer situation on most REO homes we present offers on. We will present an offer and the listing agent will email or call back with a request for your "highest and best" because of multiple offers. All of the activity is on the cheap homes.
Submitted by Andrew Brentan on July 30, 2009 - 10:40am.
Andrew Brentan
Team Aguilar Real Estate
San Diego Real Estate | Real Estate Blog
Here in San Diego, we're averaging a bout 6-8 offers per listing. Last month one property had 43 offers on it. We're also seeing an increase in investors making offers.
Submitted by Mark Jacobs on July 30, 2009 - 1:57pm.
Here in Augusta GA we are not seeing this many offers on the same property yet. The low end of the market is the only thing moving at this time.
Augusta Real Estate
Submitted by Steve Castaneda on July 31, 2009 - 11:18am.
In Houston, I'm finding that out of 10 properties that actually say "active" in our listing database, 4-5 have multiple offers with one waiting for seller signatures.
I thought it was just a fluke, but it's been happening pretty consistently lately. I will note, however, that I really only notice this with foreclosures and short sales.
Visit my site about River Oaks Real Estate and browse homes for sale in Houston
Submitted by Becky Washam on August 9, 2009 - 3:22am.
It sounds like housing is truly coming back. Hopefully, the rise in purchases will not re-inflate the bubble and cause yet another dislocation in the economy as people live off of their equity.
Coppell Real Estate
Houston Texas Homes for Sale
San Antonio Texas Homes for Sale
Submitted by Ira Bland on August 9, 2009 - 8:52am.
True, the first-time buyer tax credit is part of the reason for multiple offers.
But, I am also seeing as a deliberate pricing strategy setting asking prices lower than current market values. This is a strategy that has worked for REO's and is now moving into what can be termed the "retail" segment. The low asking price attracts many buyers to preview the house and a lot of these folks write offers. The seller counters the best of the multiple offers asking for last, best, and final offers.
The house usually sells quickly and at a very good price for the homeowner. By the way, sometimes the seller's counter offer states no adjustment to the buyer's price will be made if the appraisal comes in low (usually due to the HVCC). Basically, if a buyer really wants a house, they must be prepared to make a serious offer and have funding in place to back it up.
One last point, the above strategy means buyers MUST do their homework to determine fair market value and bid accordingly. They should not merely negotiate based on the asking price. They need to negotiate based on market condition facts. They should make their last, best, and final offer from the outset. If they get he house, great! If not, they gave it their best shot. Buyer Beware!
Ira Bland
Submitted by Sylvia Barry, Marin Realtor on August 9, 2009 - 10:00pm.
I am located in Marin county, San Francisco North Bay. We are seeing a lot of multiple offers for well priced regular sales, REOs and even short sales.
The multiple offers are for houses in all price ranges - condos/townhomes at the lowest price range and lower end single family homes for first time home buyers and/or investors with rippling effects to higher end move up homes or luxury homes.
The $8,000 tax credit and historical low interest rates obviously gave a boost for the lower end houses which allow the higher end homes to move.
Many homeowners are attuned to the current housing situation and most are open to pricing their homes aggressively against the REOs and short sales. Regular sales and REOs attract most multiple offers from impatient buyers. However, the most offers I have heard recently is 23 offers on a single family home with an artificially low list price so they can get an offer in for the lenders to quickly start negotiation phase. That, was a short sale!
There are, of course, less competition in a short sale situation due to the potential long wait for lenders' approvals. With patience, buyers can often avoid multiple offer situation and get a great deal with short sales. Quite a few of my clients took advantage of this particular situation and are now very happy buyers.
Sylvia Barry, ePRO
Frank Howard Allen Realtors
Marin Real Estate Consultant
website - www.SylviaSellsMarin.com
Blog - AllAboutMarinHomes.com
DRE License# 01415544
415.717.0293 cell
415.899.9237 direct
415.897.3067 fax
Submitted by Esko Kiuru on August 10, 2009 - 6:55pm.
In Las Vegas the lower end of the market is attracting nowadays multiple offers. Foreclosures and bank REOs have driven prices way down and first-time buyers mostly with FHA mortgages are making a move, as are investors often waving a wad of greenbacks. Any which way the high inventory can be brought down is just fine.
website: www.eskokiuru.com
blog: activerain.com/eskokiuru
Submitted by Robert Huntsinger on August 11, 2009 - 12:33pm.
Recently had a priced right above average short listing that produced five offers before there was a key on the home with a total of 25 offers.
I was surprised at the level of buyer from no no’s, no down no costs, to all cash.
Corona, CA
Robert Huntsinger
Broker
Empire Realty
Empireteam.com
Submitted by Gina Puckett on August 12, 2009 - 9:43am.
I lost a staging job in La Crescenta, CA this morning because the agent put the property on broker caravan yesterday and has already received two offers. BUT, we'll wait for the other shoe to fall- low appraisal values have been causing many escrow fall-outs in this area recently.
Submitted by (Fort Worth Real Estate Guy) on August 17, 2009 - 6:08am.
It is happening here on Short Sales and Foreclosures all the time
Mike Pannell
Nu Home Source Realty LLC
817-509-1400
http://www.nuhomesource.com
http://www.nhsfortworth.com
http://www.nhsdallas.com
Submitted by Linda Slocum on September 12, 2009 - 7:58am.
Multiple offers have been the norm in the Santa Clarita, CA area for several months. Now that we have less than one month of inventory available, it's getting even harder for buyers to get their offers accepted in such a competitive market.
All offers submitted need to be clean, complete, and competitive. Buyers need to realize that in this market, the list price is only a starting point, and that many homes are selling above list with multiple offers.
Linda Slocum
Santa Clarita Realtor
661.670.0349
http://HoneyStartPacking.com
http://SantaClaritaRealEstateBlog.com