Wednesday, June 24, 2009
Real estate gods bring multiple offers back. With a vengence.
Twice in the last week, I've submitted offers on properties that were over the asking price. Yes, each home was "priced to entice" -- listed low in hopes of getting a lot of offers quickly. Unfortunately, this strategy seems to be working all too well.
Each offer was from well-qualified buyers and was definitely in line with the comparable sales. One house was in the $750k range and another was in the $500+ range. And each offer was blown out in a multiple offer situation where the prevailing offer was much higher.
Colleagues tell me about 48 offers on a house on Margate, or 18 offers on this or that one in Reseda, 8 on a West Hollywood condo, etc., etc.
This isn't supposed to be happening. Aren't appraisals tightening up? Aren't buyers sitting on their hands? Well, obviously not. The real estate gods have turned this back in to a sellers' market.
This all may change if a lot of foreclosures come on the market soon. That should produce increased inventory, which will have a downward effect on prices.