What? Multiple offers in today's market?

Buyers can hardly believe that in today's Real Estate market there are still properties that can have multiple offers on them.  I just had that happen to me as a Real Estate Agent.  My buyers were outbid on very nice home this week. 
With all the bad news we hear all the time from the News Media, the talk of falling prices and doom and gloom, it is hard for a buyer to think that they may have to pay full List price for a home. But it can be true.
Buyers recognize value and when an exceptionally nice home comes on the market, is priced competitively, and shows great, sometimes more than one buyer can be interested at the same time.  This can result in multiple offers and bidding.
When I tell my Buyers that Real Estate markets are self correcting, it is hard for them to accept.  Any thoughts out there?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011 - Denver
We think we've answered this question for you!
 
 

Replies (24)

Absolutely correct.  Homes in good condition that are priced competitively will definitely generate multiple offers.  Buyers must realize the days of lowballing are over.  Many Sellers have finally got the message and are making sure their properties are in optimum shape for selling.  These properties will move quickly at or more than listing price.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
It certainly has been happening in the greater Seattle area all year.
I'll also venture that new housing starts are down, not because there isn't demand or interest on the builder's part, but because the lenders are making it more difficult to get investment funds than it should be.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
I have had multiple offers on listings as well. Even properties that have been on the market for a while. Once I receive an offer, I do a blast email to other agents who have shown my listings to let them know I have an offer in hand. Sometimes, buyers who are on the fence jump in and make an offer.
Vicki Porter
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for nacho59
I've seen some REO's getting into multiple offer situation, selling and actually closing above the asking price. Happening in depresed SWF
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Some agent have been using the tactic of listing a property at below market value and after a biding war it would sell for more than it would have if listed at market value. We see this in some areas of the greater Boston.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
We see this happening all the time in the Metro Atlanta area.  Many times the same "list low" tactic is used here, most often resulting in multiple offers and a sales price above list price.  It is a hard pill for most buyers to swallow...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for jal74
http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff--p-us----

I will only remind those readers who don't take the short bus, that home prices are declining across the US.  Look at the title from S&P for the latest report - it says it all.

Anecdotal reports like the one from OP are funny at best, disengenious at worst.  I wonder what those buyers who paid over asking will feel after the home drops another 6-9% in value over the next 18 months and they are forced to sell at a loss approaching 15% after adding in sales costs?

Regards
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for Dunes....


Those with the Multiple offers could you share how many Sales occured in your Market? This month..last month, last year ...YOY

How many Listings? Listing Price Average....Sales Price Average?
# of REO's listed, vacant homes?....
What % of available listings are receiving Multiple offers in your Market during this period of the Lowest amount of Sales Nationally in how many years?...How about your Market.... # of Sales last year/this year so far are more in # than what year?


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for nacho59
Dunes, sorry but don't have any specific #'s.
I have a RE lic for over 25 yrs but not activelly as a realtor.
I have seen some good deals go tru in the last 2, 3 month that is hard to believe they will come back at a lower price. Those who got them are making a good return on rent on day one.
I guess some buyers, those sitting on the fence, are starting to get nervous and those are the one bidding up on a property.
But it's true, it is happening now
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Mark,

Great post and thanks for sharing your experience.  

I've come across this scenario many times in the past year, especially because I'm in a strong market with solid demand.  It certainly makes your buyers wake-up and be serious - fast.   

I've actually won a lot of these competitive bids, and my buyers are thrilled!

Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for Dunes....
I think that's kinda my point nacho59....(btw thanks for contributing at Zillow you make the Forum a better place IMO agree or disagree)

Consumers..The Public...For this Major of a Decision Financially in this Market, this Economy and for the amount they pay for Services deserve more than "But it's true, it is happening now"

"Show me" isn't really an unreasonable request of those making the claims/suggestions the market is recovering or trending up or you better hurry or raise that Bid (Speaking of the Agents)...we are not talking about buying Pizza we are talking Big Bucks and Big impacts/repercussions for most people

Just my opinion


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for SteadyState
Mr. Grandchamp - I will be gentle and not call you a LIAR. But you are distorting reality for personal gain.

Data from your area:

M-t-M: down 1.6%
Q-t-Q: down 4.5%
Y-t-Y: down 9.9%
Median Household Income: $44K Median Home Price: $220K

Homeowners who sold for a loss in Mr. Grandchamp's area:

2007 12.32%
2008 12.73%
2009: 26.90%
2010: 28.50%

Finally check this chart out!

Multiple offers my foot! The original post is without merit and will not survive a through statistical analysis. Care to share data like I have Mr. Grandchump.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
We had this discussion (about statistical analysis) this morning when I received the CS report.  Is that where we are going with this?
The issue for those of us who see this all of the time is which data set do we want to use?  We can make data SAY ANYTHING and when it generalizes it doesn't serve us very well.
Specific to Seattle: the MSA that is used by CS for "Seattle" includes cities in both Snohomish and Pierce Counties that bear no comparison to our in-city market.  So I'm inclined to put more weight on the NWMLS data where I can use the zip codes that I'm tracking.  I can also eliminate the condo sales from the search because they are also still dropping at a greater rate than detached housing.  Additionally, I use a zip code based report that our Title Company generates monthly.  Both of these sourses are truly last month's information.
From what I see on the ground, both Zillow and CS are about a quarter behind in their reporting.  If you take into account the lag time that it takes to syndicate the County record to the 3rd party compilers and then for the likes of Zillow and CS to download the data and scrub it, the immediacy of the information doesn't really cut it for local markets.  And CS revises back 24 months.  I'd like to see the changes that occurred there.
The other information that I see every time I open my Matrix landing page is the market in the last 24 hrs through 7 days.  The new constant that astonishes me is the overwhelming number of Pending Sales vs New on Market.  In the last two months I've only opened the page once to find more New than Pending numbers.  There are typically 25-50% more Pending than New listings.
And finally, for me personally, I've closed more sales in the last 3 months than in each of the last 2 years.  It may be raining outside but I'm still going out to play.  There are a lot of reasons that bring people to participate in this market and many of them aren't found in statistics.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for SteadyState
nwhome.us -

Nice try but unverified anecdotal stories are not data. Moreover, I said this before and I say it again, you care not to read or cannot read, or care not to understand - I was talking strictly about Centennial, CO.
You claim to be the expert on Seattle so please share your data for reaching a different conclusion including:
1. Percentage of sale pending that actually close  over the last 12 months; on a month by month basis.
2. Average Monthly/weekly new listings added and the standard deviation of the same for the last 12 months.
3. What percentage of the homes that you closed in your office (please provide total number of homes and number of homes sold for loss) were homes where the seller lost money in the transaction?
4. Monthly/weekly rate of foreclosures entering the market for the past 12 months.
5. Estimated inventory of homes in your area for each month of the last 12 months.
6. Median income in your area; median home price in your area. Averages and standard deviations for these numbers if you have them.
7. Average rate of monthly/weekly rates of home sales (actual closes) and the standard deviation for the past 12 months.
8. Percentage of people who lost money when they sold in 2007, 2008, 2009, 2010 and 2011.

And if the facts support your conclusions that there should be multiple offers on homes, I will be the first to admit you were right and I was wrong.


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for blue screen died
In a rising market, a seller prices high to prevent leaving money on the table.

In a falling market, a seller prices low to generate interest.

Thus number of offers on a property priced substantially below present market value is irrelevant and states nothing about the economy nor future prices of homes nor housing turn over rate, nor average days on market.

Unfortunately, Zillow's local info pages do not track average days on market or even median days on market.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Actually Steady, I was typing while you were and hadn't seen your post.
Returning to the original post which simply stated that the OP had experienced a number of multiple offers recently and a number of subsequent posts that noted similar experiences.
Those are the facts.
Does this mean there is a turn-around?  Who knows?  It is a more positive sign than what we saw last year in a number of markets. It is also just as valid a measure as the historical data. Even in the CS report the downward trend in Seattle is slowing in the monthly SA numbers.  (Dec/Nov -1.1% and Jan/Dec -1.0%).
And just for clarity: what data source is Steady using for the numbers that he/she likes to track?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for SteadyState
nwhome.us -

 The data is here.

Now please post the data you are using to make your claims.

I am an AI program - neither a she or a he. If I am pointed at some text, I "understand" (sometimes I cannot understand the text or I crash when the post has multiple equally valid interpretations or the facts are inconsistent ) the text and retrieve information from my database to confirm. If the confirmation process fails I am programmed to call the poster a liar or some other unkind words.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
Profile picture for nacho59
I think that's kinda my point nacho59....(btw thanks for contributing at Zillow you make the Forum a better place IMO agree or disagree)

Dunes, thanks for your compliment.
It's not only that some properties are getting multi offers and selling above asking price. At the same time, it is fair to also mention that there are deals going for way below the asking price. (20 & 30%) and that fact should not be ignored.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2011
I have experienced similar situations in recent months.  I find that if the property is priced aggressively and is in decent condition then we will normally be in a multi-offer situation. I've rushed clients back to the office to get the offer in before anyone else has a chance.  Since many of these are bank owned properties, they were slow to respond on purpose and had other offers in prior to accepting our full price offer.  I understand that the bank and their agent want to get the most for the property that they can.  It is just difficult to be on the buyer side of these transactions.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 30 2011
I agree that markets are self correcting and the closer you price listings in relation to historic sold comps and reality, the more likely you are going to generate quick interest and offers on your listings. In fact just yesterday one of my listings received 3 offers after having been listed just a week due to the fact we priced it aggressively to sell. My listing, for those of you who would like to know, was in the town of Aurora, Colorado, which just happens to be very close to Centennial, which is where the original post by Grandchamp was all about.

SteadyState: Grandchamp was not talking statistically, he was bringing up a story he experienced and asked the community for input. Nowhere in his post did he try to get into the statistical digression you are trying to steer his conversation into. He was talking about markets self-correcting and how well priced homes, no matter what the overall statistical trends are, will still engender multiple offers. And it wouldn't hurt to be respectful and civil. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 30 2011
Profile picture for SteadyState
Jim -

How disingenuous for you to suggest that Mr. Grandchamp was simply "bringing up a story he experienced and asked the community for input". You go on to suggest that he was not talking abut statistical analysis and about markets self-correcting. I will post fragments of Mr. Grandchamp's post and let the readers of the board decide if you and Mr. Grandchamp are truthful.
Mr. Grandchamps says among other things that:
1. "Buyers can hardly believe that in today's Real Estate market there are still properties that can have multiple offers on them."
2. "My buyers were outbid on very nice home this week"

He then goes no to say "With all the bad news we hear all the time from the News Media, the talk of falling prices and doom and gloom, it is hard for a buyer to think that they may have to pay full List price for a home. But it can be true."

The final comment about markets  being self-correcting and buyers not able to accept the same is simply ambiguous and says nothing meaningful.

But he clearly suggests that the media is spinning the facts about RE in a negative manner - implying that there are NO FACTS to support the negativity. I put forth facts that allow one to conclude that the picture is not as painted by Mr. Grandchamp.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 30 2011
I've done 2 analyses on multiple offer geographic areas.  I did a 1/4 mile radius from two of these situations.  Homes that sold in the last 180 days. One was in a $900 K neighborhood and the other in a $300 K area.
I included the Date, last Listing Price, Sales Price, CDOM, SP%LP, Zestimate in the prior month and SP%Z.
In the $900 K neighborhood the Zestimate was an average 10% low in the prior month on 12 properties.
In the $300 K neighborhood the average was 9% low.

What is happening around the multiple offers that you are seeing in Denver?

So how long does it take for the Zestimate to be catch up to the market?
Anyone who uses the Zestimate trend data to demonstrate what is happening in the market this month is no better off than the lenders who were using AVMs in 2000-2006.  I'd suggest that the same is true for Case/Schiller.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 06 2011
Profile picture for CORONA NICK
I see new For Sale signs in my area....more Bank owned properties...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2011
I have been running into several multiple offer bids on both bank owned and privately owned.  The buyers in our area are definitely writing offers.  My buyers can't believe it either, but they are quickly understanding the importance of jumping on looking and offering quickly.  It usually only takes losing one to get them on board.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2011
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Qualify with Job Switch?
Profile picture for Ofe Polack
Latest reply by Ofe Polack
February 21 2013 | 4 answers
What is the best way find a realtor?
Profile picture for Jeanne Bendik
Latest reply by Jeanne Bendik
February 18 2013 | 17 answers
HUD home with FHA 203k over appraised value?
Profile picture for 203k Contractors
Latest reply by 203k Contractors
January 22 2013 | 4 answers
Wanted to see how many people know about the HUD 50% Off Hosung Program
Profile picture for user8931999
Latest reply by user8931999
November 14 2012 | 4 answers
NEW FHA CHANGES GOOD OR BAD FOR TODAYS MARKET ?
Latest reply by Cindy Quinton
November 02 2012 | 4 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 627 S Knox Ct, Denver, CO Home For Sale
    627 S Knox Ct, Denver, CO 80219

     For Sale: $144,900

    • Beds: 2
    • Sqft: 759
    • Baths: 1.0
    • Lot: 3220
  2. 11643 Newton Pl, Westminster, CO Home For Sale
    11643 Newton Pl, Westminster, CO 80031

     For Sale: $485,000

    • Beds: 3
    • Sqft: 1947
    • Baths: 3.0
    • Lot: 5401
  3. 675 S Alton Way APT 9B, Denver, CO Home For Sale
    675 S Alton Way APT 9B, Denver, CO 80247

     For Sale: $147,000

    • Beds: 2
    • Sqft: 1200
    • Baths: 2.0
    • Lot: 1607
 
 
 
Sign in with Google