This is a question that I was recently asked. You see over the last 3 weeks I have been in 3 multiple offer Real Estate deals and have heard of several others.
I think the answer(s), at least for Charlottesville area, are simple....
BUYERS: Are taking advantage of low rates and lower priced homes (getting off the fence).
SELLERS: The ones that are serious, are getting their homes in the best shape possible (I just had a listing go under contract and we did not even have time to add it to the MLS, more on this later) and the sellers are now pricing their homes competitively!
It is as simple as that!
Great to see our market taking off again, let me know if you have any questions?
Brought to you by that guy who sells Charlottesville VA Real Estate
I currently have two properties with multiple offers. Both short sales. The market activity has definitely picked up.
Morning Charles: In my area, we're seeing multiple offers because some REO agents are putting unrealistically low listing prices to encourage a bidding war....it works, but I'm not a proponent of this practice.
I hope the buyers remain interested and multiple offers don't result in sellers thinking that prices are going up.
Mark and Gail - ours are not because of REO or Short sales, just good deals!
Gabe - I am with you
Charles, I haven't seen a better time when a so many things are coming together at one time for buyers. Large inventory, low interest rates, government incentives, seller concessions. Rich
I've had several multiple offer situations even as far back as 18 months. Most properties where REO or HUD properties. Gail, I must disagree that REO Agents are to blame for low priced properties. As an REO agent I'm at the mercy of the Asset Manager who sets the price after at least 2 BPOs and in some cases an appraisal. I can get them to change a price after the first 30 days but it requires at the very least a CMA to substantiate that request.
We're seeing the same here in NJ...
Isn't it wonderful!
Hi Charles! I also have been involved in several multiple offer situations, even recently in this market. I think if a property hits the market both looking good and priced to look like a good deal, it can definitely cause competition among real estate buyers. It shows the home buyers really are out there, they just don't want to pay top dollar for a home unless it is very much worth it, especially when there are so many homes for sale to choose from now. The home buyers in today's real estate market are looking for the best deals, and a motivated seller can be successful if price and condition are just right when they go on the market.
You are so right Charles. Buyers are in shock because they thought they would have thier pick and now are seeing that the good houses are the ones everyone wants.
I was in a multiple offer situation and there were seven offers on the table, and we got the deal, only because we were a cash deal, with a quick close, No, we were not the highest offer presented. I agree buyers are in a state of shock, because they are not prepared to hear "Sorry" your offer was rejected.
It all boils down to supply and demand. When there are not enough good homes is a particular price point buyers will be lining up for the few that are great.
Charles, sounds like the Charlottesville area is picking up. It looks like sellers and buyers are getting more realistic.
Still LOTS of inventory.... and good buyers are at a premium. So serious sellers are aware of what is going on and listening to good agent about pricing... no nefarious strategy involved.
Charles,
Could it be that G.O.D. is back...Good Old Days...!!! :) Thanks, Fran
Very good news for sure! We are starting to see some of that down here as well.
Charles... one reason I THINK this is happening is because Realtors/Banks are pricing some of these homes TOO LOW!
I Charles - I've seen multiple offers in Ohio as well; mostly with REOs. There's a large inventory of these properties and they're listed at very low prices.
Wow thank you Cindy for the great update on the topic.
-Peg <(-.-)>
Charles,
Yes, the market is heating up!
Ann Hayden in windy Wildwood, Missouri
Charles, Sounds like the low interest rates, prices and tax incentives are making a lot of people get off that fence. We are seeing increased activity in the Sumter area too. I have actually heard of multiple offers too!
Charles, The last time I saw a multiple offer was 2006. I hope this trend is heading west!