Is this really happening now?

DH and I went to a bunch of open houses today - houses that have just come on the market - and both already had multiple offers!!!

We put in a FULL PRICE offer on one house and just heard from the realtor that they got an offer for $20K OVER asking?? I am discouraged - is this really happening?

I thought it was a buyers market, but it seems like all the buyers are making offers on the same houses!!! ARGH

Re: Is this really happening now?

we ran into that problem last summer. i think there's an overload of houses on the market (hence the buyers market) but not many that are, for example, move-in condition. i think it also depends on where you're looking (and we were looking in some of the same areas as you are).

Re: Is this really happening now?

Were they fair priced to begin with?

I'm no expert - I'm just watching the market - but I think that houses that are priced well and in great condition are selling fast without the lengthy lag times on the market like a year or two ago.

I'm not sure it's a buyers market for those types of homes anymore.

There's probably a limited number of such homes in the area you want.

Take it as a testament to your good taste.

Re: Is this really happening now?

this happened to us too last year, we kept getting into bidding wars, (i think this was made worse by the 1st time homebuyers incentive though) but in any case, i think if a house is priced right in good condition then it will go fast. we were confused too thinking it was a "buyers market" but when you're competing against others it makes it tough!

Re: Is this really happening now?

Even though it's a buyers market the good houses are getting snatched up. We put bids on two houses knowing they had offers. We got calls back on each. The house we are going into contract for we bid slightly higher than casking because there was an accepted offer and the seller had been waiting for the buyers to sign the contract for a few weeks. So, we basically snuck in and took the deal.

Message edited 4/4/2011 8:23:32 AM.

Re: Is this really happening now?

we ran into the same thing last year when we were looking. the 1st 2 houses we loved ended up with numerous offers and sold way above asking.

the paid over asking for our house, but it was not that much in the grand scheme (around $7000)

i think prices that are fairly priced go fast. there are a lot of over priced houses out there that need a lot of work. our house had been on the market for a year at $100,000 more than asking when we looked at it. the weekend they signed with the new realtor and lowered the price they got a lot of offers.

Re: Is this really happening now?

It's still a buyer's market, because supply for houses exceeds the demand. There are still a lot of homes out there and the prices (as well as interest rates) still remain relatively low, so the affordability factor is high. One big factor is that there are still a decent number of distressed properties on the market which bring down the selling prices.

And of the inventory out there, much of it is move-in ready. But "move in ready" means you can move in and live there without having to do any work first, not that everything is cosmetically updated and beautiful. Those houses are still priced at a premium! Many homes on LI are sold by senior citizens who are looking to downsize or going to assisted living, and many of those homes have not been updated for awhile. But they are often well maintained and do not require work, if you can live with pink tiled bathrooms and wood paneling!

Also, I think you are doing yourself a disservice if you are making an offer via listing agents that you meet at open houses. It's to the listing agent's advantage to sell their own listings, so if they have an interested buyer, they can sway the homeowner to accept their offer first. The listing agent as all of the control -- they have access to the seller, they know about the level of interest and all offers on the property, they control the flow of information. Ethically, the listing agent should be making sure that the homeowner gets the best deal from the most qualified buyer, but unfortunately, not all agents out there operate that way. So I think the deck is already stacked against you if you are going through the listing agent.

Even in a buyer's market, you should have someone looking out for your interests. You would be much better off with a buyer's agent, and if you are not willing to sign on with an agent as a client, at least find one agent that you can work with consistently and who is serving you as a customer. It's really important to understand how the agency relationships between realtors and consumers work, and what your options are. Many buyers become frustrated, but they don't understand the process or they are not taking advantage of everything out there that could help them.

Feel free to contact me if you are not sure how a realtor can work with you and what the different agency relationships are, adn I will explain, so at least you are making an informed decision!

Re: Is this really happening now?

Some areas are NOT buyer's markets. It's all about desirability, supply and demand. Not much nice stuff out there, so yes, some buyers who have been eagerly awaiting may bid more than asking.

Re: Is this really happening now?

Wow, i find that a little hard to believe in this market, considering what is out there and how long most of these houses stay on the market. I guess it depends on the house, area and condition.

We've looked at a house 2 months ago and just put in an offer the other day, there's been nothing really going on in the area we're looking in. Only investors buying.

Re: Is this really happening now?

I'm glad to hear others as surprised as me! I do see what most of you are saying - a fairly priced house with little to no work needed in a good area is going to sell FAST!

We are hoping that our terms are good enough to make us desirable candidates - seeing that we have 20% to put down, are pre-approved, can be flexible with closing, have nothing to sell. Also, I thought that we would be desirable since we aren't working with a broker and thought maybe the listing agent would push for us since she would get the whole commission - am I wrong about that?

Re: Is this really happening now?

yes, we saw it MANY times!

in fact, the house that we are in contract for, had a price INCREASE after offers came in. on day 2, they got many full price offers (ours included) and they raised the price by 20k we once again offered full and they took our offer since we were the first offer in.

i think that the house was priced too low to begin with. probably when happened with the house you offered on.

this is my advice having just been through house hunting in this market - if you LOVE it and you really want it and you think it is priced right, offer a little over asking. this way, you will be at least strongly considered if they get numerous asking price offers.

Re: Is this really happening now?

Posted by maymama

yes, we saw it MANY times!

in fact, the house that we are in contract for, had a price INCREASE after offers came in. on day 2, they got many full price offers (ours included) and they raised the price by 20k we once again offered full and they took our offer since we were the first offer in.

i think that the house was priced too low to begin with. probably when happened with the house you offered on.

this is my advice having just been through house hunting in this market - if you LOVE it and you really want it and you think it is priced right, offer a little over asking. this way, you will be at least strongly considered if they get numerous asking price offers.

Re: Is this really happening now?

Sorry Carla. I have no advice, only

Re: Is this really happening now?

Posted by ThePs1023

Sorry Carla. I have no advice, only

Re: Is this really happening now?

it happened to me 2 weekends ago- we were $21K over asking and did not get the house

we did get another house last weekend- $1k under asking - it was on the market for less then a week

people are buying houses- I am selling 1 house every 7 to 10 days on average

it's a buyers market- but the well priced homes are moving

I am noticing some houses bring priced under market value- those are the ones getting mulitple offers over asking- I wish some of my sellers would do that!

Re: Is this really happening now?

Yes, unfortunately!!! In a good town and if it is a nice house they are going very quickly.

We are going through the same thing right now. We are on our 4th house we placed a bid on. Every house had multiple offers and we are all competing. None went for over asking price though. There is a lot of inventory but VERY few houses that are nice and all done! Those houses as soon as they are going on the market are receiving multiple bids within the first week.

It's so fustrating!!

Goodluck to you!!!

Re: Is this really happening now?

wow, I'm surprised, but as a a soon-to-be-seller, I'm also happy to hear it.

Our house is DONE - inside and out.

Anyone looking in Kings Park?

as a buyer, I've seen houses dropping prices. But they tend to be overpriced to begin with.

Message edited 4/4/2011 5:02:07 PM.

Re: Is this really happening now?

This is happening 100% in the town I am looking in. If the house is priced right and a good house it goes in an instant and for over asking. I lost out on a house that I made an offer on OVER asking and, the accepted offer was well over $100,000 over asking - all cash. I went to see a house at an open house this weekend - I didn't like it but, I found out after that it already had 5 offers over asking. Two houses I wanted to see in the past week were gone after being on the market a month.

Message edited 4/4/2011 9:46:31 PM.