Multiple Offers in the Changing Market
Since 2012 has real estate has begun to turn the corner. The statistics the past few years are consistently pointing to more activity, less inventory, and prices holding at least steady (and in many areas increasing). What will happen next is that the market will start to shift from a buyers’ market to a sellers’ market and that is what we have seen in the part year. This requires a shift in our thinking as well, because it means buyers won’t be able to get those bargains anymore– in fact, we’ve seen many instances of multiple offers during the past year. A reluctance to change attitudes could cause some buyers to miss out on their chosen property.
For example, lets say a property is listed for $200,000, which is considered market value. Buyer “A” really wants it, but thinks we’re still in a buyers’ market so he offers $160,000 in an attempt to get a bargain. By some mysterious fundamental law of real estate, if two people are going to want the same property they often want it at the same time…so in comes Buyer “B” on the same day. Buyer B knows the house is listed at market value and that there’s someone else interested, so s/he offers full price and the offer is accepted. Even if Buyer A would have been willing to pay more than $200,000, he’s lost the chance because he didn’t realize that the market was shifting.
During this transition phase, not every property will get multiple offers, but as more do, it will begin to put an upward pressure on prices. Are there still bargains to be had? Absolutely! Get ’em while they’re still hot.
Update September 2017:
The local and national real estate markets have become even more of a seller’s market. There are many prospective buyers but very low levels of inventory – historically low levels. If you are thinking of selling your home, now is the time if you want top dollar!