25 Feb Multiple, Multiple, Multiple Offers….a good sign?
If you look for positive news about the housing market, you will find it easily. Many industry experts are speculating that 2012 will be turn-around year and prices are at or near the bottom. There is statistical data to support this including New Home Starts, Number of Homes Sold, Higher Success Rates on Short Sales and Lower Number of Foreclosures on the Market.
Here in the Real Estate trenches, the encouraging signs of recovery in the market can be seen in the form of multiple offers on properties. Whoa, don’t go raising the list price on your $450K house just yet. The multiple offers I have been involved in this month were all on bank owned properties, listed in the first time home buyer price range.
The first was a townhome in Burnsville which received 3 offers and the lucky winner bought this end unit townhome with 2 bdrs, 2 baths, a loft, vaults, 2 car garage, all new carpet and paint for just $104,000.
Our second winner competed against many offers (I’m not the listing agent so I don’t know the exact count) and she won a beautiful, nearly new townhome which was for sale in Farmington with 2 bdrs, 2 baths, Fireplace, 2 car garage, Owner’s Suite with vaulted ceiling and private bath plus a fantastic lower level family room, all new carpet and fresh paint for exactly $100,000. This was such a nice purchase, I’m so happy for my client.
The third Multiple Offer situation happened on this week, a client decided to offer on a single family house in Farmington, it’s lovely and the list price is about $138,000. We were told by the listing agent on Sunday night that there were already 2 offers on the house and other agents had indicated their clients were interested too. My clients wrote a great offer and we submitted it on Monday afternoon.
We have been waiting patiently all week, the listing agent has kept us informed but the bank has not accepted any offer. Today, the listing agent told me, “there are 10 offers on the house, they just keep coming in and the bank hasn’t decided on any of them yet”. Wow, 10 offers, that’s a terrific sign for our South of the River Suburbs! I sure hope my clients get the house, but with 10 offers the chances of winning the home is declining rapidly.
The Twin Cities housing market is kind of stuck’ between a Rock and a Hard place’ due to low inventory. The level of inventory is very low, ordinarily when the level of homes for sale on the market is this low, the prices of homes would begin to rise steeply.
We want to shout to potential Home Sellers out there….HURRY~ HURRY, put your home on the market, it’s a great time to sell. However, many would be Home Sellers still cannot afford to sell their homes because their mortgage balance is at or over the value of the home.
The strict guidelines for Appraisals and Lenders’ scrutiny of home values will likely mean prices are not able to rise very fast or very soon. Banks and Lenders have lost so much money in this market downturn, they are going to be very conservative in approving appraisals.
It may take a little time for the Housing Market to slowly begin to appreciate in value, but I do see very hopeful signs this Spring! I think the low inventory will give Builders a chance to jump in and sell a significant amount of New Construction Homes. Also, the foreclosures and short sale homes will have a chance to sell since they are priced attractively and there is not much competition.
If you are planning to purchase a home this Spring, get busy! Read some of our other articles including The Art of Writing an Offer, How Much Money do I really need to buy a Home and We want to move in 6 months, when should we start looking?
If you need to sell, keep good track of the marketplace in the next 3 months. Call to get a Market Analysis, 612-889-6496 or visit our What’s my Home Worth page!
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