Multiple Offers
Another trend I am seeing over the last month is the resurgence of multiple offers. Savvy home sellers are aggressively pricing their homes. Pent up demand from buyer’s tired of looking at over priced homes and reluctant to play the short sale waiting game are bidding up the prices on these homes.
As a home buyer when you see a home you love, your real estate agent writes the offer, and the offer is presented with your prequalification. In a multiple offer situation other buyers are doing the same. The seller and their Realtor then decide which course of action to take:
*Select the best offer
*Counter all of the offers
*Counter only the best offers
Usually, the seller counters the best offers asking for “highest and best” (price). Now what happens to that well priced listing? Due to the heated bidding, it probably will sell for more than it would have had the Realtor initially priced it higher.
Categories: A Buyer's Perspective
Tags: multiple offer process
Good strategy for the current market. In many communities with increased activity we are seeing overbidding and multiple offers because of aggressive pricing. People will buy what they can afford and think is a good deal, and that is what's spurring the stabilization and recoveries in some communities, and keeping inventory levels from escalating.
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