Get ready, big bidding wars this spring…This article dated 04/05/13 in the latest RealtorMag, discusses low inventories of homes to sell, bidding up home prices and multiple bid situations…
With tighter inventories of homes for sale, buyers are finding increased competition through bidding wars. But the bidding may not be between only one or two other buyers — more bidding wars are popping up where dozens or even hundreds of other buyers are all competing for the same property.
For example, a home in Elk Grove, Calif., reportedly received 62 separate bids, with the final sales price more than $150,000 above its $129,000 asking price. In Cambridge, Mass., real estate brokers stopped accepting bids after the tally reached 250 bids for two condos listed at $800,000 each. The two condos ended up selling together for $2 million.
Seventy-five percent of real estate agents with the brokerage Redfin surveyed in March say their clients have faced multiple bid situations for properties — up from 56 percent in late 2011.
Bidding wars appear to be most prevalent in California. Ninety percent of homes sold in San Francisco, Sacramento, and throughout Southern California saw multiple bids during the month, CNNMoney reports. What’s more, at least two-thirds of listings in Boston, Washington, D.C., Seattle, and New York had bidding wars for homes too.
Meanwhile, inventories of for-sale homes continues to be low. The National Association of REALTORS® reported a 19.2 percent drop in inventories year-over-year in February.
references: realtor magazine, daily real estate news, cnn money
Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty
248-969-8065 or DonaldHorne.Realtor@gmail.com