Brokerage

Overheated markets have buyers, agents playing risky games

Buyers tying up one property, making offers on others in the hopes of obtaining a better deal

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Your buyer has just won a bidding war where there were five other offers. Although they didn't intend to pay $30,000 over asking price, they are happy to finally have a house under contract after six other attempts to purchase. That's today -- what about tomorrow? There are a host of forces creating the current buying frenzy. The most recent high tech boom has created plenty of "Google millionaires" who can afford to pay $1 million or more -- cash -- for a property. Multiply this by all the other successful brands in this area and it's easy to understand what is driving the demand -- plenty of money and minimal supply. I was recently chatting with Cathy Harrington of Better Homes and Gardens Mason-McDuffie Real Estate. They’re based in Pleasanton, Calif. just across the bay from San Francisco. The entire Bay Area and Silicon Valley is a major hotbed of extraordinarily fierce competition among buyers. The best properties are seeing as many as 40-50 offers with asking...