Are Multiple Offers Back?

Are the old, good days back? The days of scarce “deals”, anxious buyers and multiple offers? Well, not really, at least not for the most homes on the market. There are however listings that are highly sought after. Almost all of them are bank-owned properties, oftentimes listed well bellow the comparable homes in the area. As we all know, the prevailing opinion among today’s home buyers, is that the real estate prices are so much deflated and sellers so anxious to get rid of their homes that basically any offer would "fly", will be considered, counter-offered and, finally – lead to a sale. As it turns, it’s not necessarily the case with the hottest listings on the market, especially - REO properties. These homes are hot bargains and buyers are very much aware of that. There are plenty of people on the lookout for them almost everywhere.

A few days ago I had a buyer who was interested in one particular condo subdivision. For over 2 months none of the homes there came even close to his target price. When finally a REO condo was listed, within 48 hours my client put an offer at about 20% below the list price. Next day we learned that there are 2 other offers on the table and that my client was not the highest bidder. We are now again on the lookout for a condo there. This time my client has learned his lesson and is prepared to make an offer that would be at, or very close to, the list price.

Times are changing and we will see more and more bargain hunters. These leveraged buyers are necessary to bring some stability to the real estate market and reduce inventories. The number of foreclosed houses and foreclosed condos is still on the rise. Foreclosed houses and condos represent at least a half of all sold properties this year. More bargain hunters are still needed!