Multiple Offer Situations heating up again -
This past week I wrote two offers for two different clients. Both were for single family residences, one in San Rafael, one in south Novato. They attracted 15, and 14 offers respectively. They both went into contract for over $100,000 OVER asking price. Both cases were a bit extreme since they were listed for a bit "under market value" which isn't that common. Yet, it tells us a lot about the eagerness among buyers in Marin right now.
It is more common with multiple offers for homes priced below $1 million. But even in the high-end segment it is common to have 2-5 offers. Any time a house is priced at or below current market value, one can expect more than one offer.
Last year was infamous for the uptick in multiple offer situations, not to mention the fast increases in real estate prices. No one has a crystal ball, and it may be too early to say if 2014 will be a repeat of 2013. Personally I think it will be a repeat in terms of multiple offer situations, but no in terms of price increases.
Most buyers still view this as the perfect time to enter the market, to trade up for a bigger house, or to down size. What all these buyers have in common is that they are buying for the long term. Historically and statistically, prices are "low" and with the very favorable loan rates it makes for the perfect scenario to buy. Investors with the goal to flip homes are a bit less enthusiastic, yet they are bidding competitively on "easy straight forward" fixers. Most investors compete with cash vs most regular buyers need a loan and therefor offer more to attract the attention of the seller.
"Cash is king" does not always applyJ. All in all, I think we have a healthy market. Sellers are pleased with the activity, buyers are optimistic and realistic about their long term plans and realtors are busy.Enjoy the spring real estate market and the million shades of green out there!! Let me know if I can be of any help.