This is the other article that several people sent in – thank you!
Rob Dawg wondered if these cases of dozens of offers could be tempered by putting the right price on these from the beginning. The agent’s Zillow profile shows 30 sales in the last year – and 26 of those were seller sides which is great and it means she knows something about pricing. But I think when you are pricing a home on the lower-end of the market these days, you can add easily 10% on top of the comps and buyers won’t notice – because other sellers are already doing it too. Note: the agent didn’t take the highest offer here either.
Ellen Coleman had never received so many offers on a house in her 15 years of selling real estate.
She listed a fixer-upper in suburban Washington, DC for $275,000 on a Thursday. By Sunday evening, she had 88 offers. “The offers just kept coming,” she said. “I felt like Lucy with the chocolates. I’m thinking, ‘This is just out of control.'”
Of those 88 offers, 76 were all-cash, said Coleman, who works for RE/MAX Realty Centre. There wasn’t even enough time for all of the bidders to visit the property. She said 15 offers were sight unseen.
The four-bedroom, 1,800 square-foot home sold for $460,000, nearly a 70% increase from the asking price. She said the winning bid was not the highest offer, but it was all-cash with no contingencies and it had paperwork in place.
The buyer, she said, is an investor who is likely to renovate and resell at an even higher price.
“It was a lower priced property for the area and may have been an outlier,” she said. But even her other listings have typically been getting closer to 15 offers. “Several people came in wanting to be homeowners and do the repairs themselves. There is such low inventory out there and people feel like that is a way they can get into a home.”
Read full article here:
https://www.cnn.com/2021/03/29/success/when-will-housing-market-cool-off-feseries/index.html
One of my renters is leaving after only 14 months. Unusual but these are unusual times. Inventory of for sale or rent is so low my agent is suggesting a 46% increase in asking rent. It isn’t just sales.
The last cold call I got asking if I was interested in selling I said the price would be so high it would be impolite to say it out loud and then upon reflection I realized there was no price at this time I was willing to entertain.
The United States is awash in printed money, bitcoins and high stock prices. People desire something tangible at the present time. Also, home is where you work, interest rates are low and banks are lending. Let it rip.