Monday, August 10, 2009

Bidding Wars!

Think it’s a buyer’s market out there?  Think again.  (at least in the lower price ranges.)  Here are two real-life examples we’ve come across in the last couple of weeks.

Buyer’s Perspective – we found this one while out with a first-time homebuyer client.

Late July, in Surprise.  We had been looking at homes in the $100k - $125k price range, when we stumbled across this beautiful home.  It was larger than the rest, in better condition than the rest, and listed at $115k.  Wow, better call the listing agent to see how many offers they already have!

Turns out they had received 31 offers – all on the first weekend the home was on the market.  They had just opened escrow somewhere in the $160k range, 40% above asking price!  (exact price won’t be available until it closes escrow later this month.)

bidding war

Seller’s Perspective – we took a listing recently on a nice home, in good condition, in Avondale.

We put the home into MLS at about 11:00 PM on Friday night (a week ago).  By noon on Saturday we had received 5 offers.  By Monday afternoon we had a dozen offers in hand.  We had been updating the MLS information along the way to show this as a multiple offer scenario, and we changed the MLS on Monday to show the sellers weren’t accepting any more offers.  We still received 2 more on Tuesday.

The highest offer was 20% above the asking price.  Several buyers have asked the sellers to keep their offer on hand as a backup, just in case the first buyer doesn’t perform.

It looks like the time to get a screaming deal on a house in Phoenix, buying it for pennies on the dollar, may be behind us.  If you’re waiting for prices to fall further, or to bottom out, you just might be missing your opportunity..

Your can’t believe how much the market can change in just a couple of months Realtor,

Chris Butterworth