Multiple offers the new norm
The original date of this post was 8/21/13.
As an add-on to my last entry, Late Summer Feeding Frenzy, my experience and those of at least one other agent is that more of our deals involve multiple offers than not. I expect fully half of my twenty current listings to be under contract in the next two to three weeks, with several having involved more than one bidder. That has not been my experience at any point in my real estate career, which began, rather unfortuitously, in 2007. I’ve never been so busy, and never seen so many offers being made.
In fact, an offer made via another agent yesterday included a “hope” that no one would be allowed to come in and make a competing offer while we complete the inspection and prepare contracts. The best way to prevent that, of course, is with a full price offer, and another agent has indicated that his clients are deciding between this property and another.
“Bidding wars” or multiple offers are not necessarily something we agents/brokers love. While we strive to get the highest price for our seller clients, and they usually are the beneficiaries, this competitive and sometimes secretive scenario can sometimes put buyers off, and the risk is that a buyer or buyers walk away.
In my experience, the Best and Final Offer methodology, where buyers wrestle with one figure to submit in competition, sometimes throwing in more cash to sweeten the pot, can result in the party who wins feeling they’ve over-paid, and the loser replaying their choice into sleepless nights.
Recently we negotiated using what I think is the more humane auction system, whereby we go back and forth until there’s “one man standing”. It’s more transparent and I think everyone walked away content with their decision, including the couple who did not get the house.
Not only are houses moving, but in many instances two or more parties find themselves bidding in competition for a property. How long this will last is anyone’s guess, but it feels like it’s breaking through the malaise we’ve experienced for several years.
The headwaters of the Neversink River, Claryville, NY.