Yes, you're right, it sure isn't too tough to guess when the ol' supply and demand principles kick in, but I've got some great visuals to illustrate the state of our market right now.
It is not unusual to see 10 or more offers on a single property! Every time each of those homes goes pending, that means there are nine or more disappointed buyers getting more aggressive with every offer they write. It is a tough market for buyers right now, though we are seeing some nominal price gains for sellers. Maybe it's the right time to sell for you? The market does need more homes to sell! Buyers are out there in droves!
I've got some buyers now that have offered right out of the gate, 20 percent and more above listing price and still, we were outbid. And, no, we aren't being beat out just by those investors we here about. Many homes that are bank owned have "first look" programs, meaning they will only allow offers from owner occupants for the first couple of weeks or more. So, we're seeing these multiple offers very often with other owner occupants.
For a home I had listed in Antioch recently, we received 17 offers, and 13 of those were, in fact, investors, with eight being all cash. Why would a seller care about cash? Appraisal. For the typical buyer acquiring a loan to buy, an offer has to stay within a realistic range for their bank's appraiser. For a cash buyer, they can come in high and waive their appraisal contingency. Presents a strong case.
It's not all for nothing though, in an upcoming article I will discuss multiple offers and some strategies for success.
Back to the charts I mentioned up above, here are links to the detailed home pricing charts for our local towns: can you spot what happens when inventory goes down? Yup, I thought it would be pretty obvious!
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