We are seeing a lot of multiple offers on houses these days in St. Paul. The multiple offers are different than they were in 2002 through 2004. During those years a home would go on the market and some times there would be 4 or 5 offers on it in one day.
Todays multiple offers involve writing an offer on more than one home for each buyer. I have talked to real estate agents around the metro and around the country and we are all seeing these multiple offers.
No matter how a home is priced the buyers like to offer 10 to 20% less than the asking price. Sellers often reject these offers or counter them, with a lower asking price. The buyer won’t go up enough and the seller won’t come down more because they feel they have already reduced the price to rick bottom. There is a tug of war going on in the market with buyers saying your home is not worth that much and sellers saying no to the offers.
A glance at the March 2007 numbers shows that on average sellers are getting 96% of the price that the home was listed at when it sold. The local news media is not portraying the situation that way, probably because it doesn’t sell papers.
My question is what should I do with the 30 or so pieces of paper these offers generate?
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Hi Teresa,
I like your topics and your writing; I’ve been reading for awhile, but this is my first comment.
It’s interesting to see that happening in Minnesota. I’ve written about the exact same thing going on here in Phoenix – like it’s high noon at the OK Corral, with Buyers and Sellers facing off in a “who’s going to blink first” scenario…
We’ve been trying to advise our clients accordingly. Buyers – if you are buying a HOME (not just an investment, but a place you’re going to live your life), and this is the one you loved the most, go ahead and make a good, fair offer. Keep in mind that most sellers don’t have to sell, and they’ll simply say no to an offer that’s too low. Sellers – if you AND I agree that your price is already very low, the ball’s in your court. You don’t have to take this offer, but you do have to consider how long your home’s been on the market and whether the next offer is likely to be any higher…
-Chris Butterworth
Chris – sounds like you have been through this a few times.
thanks for reading, and now for writing.
Just to clarify: this is one offer at a time, several offers before one is accepted. Don’t want buyers thinking they can write on 3-5 houses at once!
Good point Aaron. my clients are making one offer on each house, no several offers on one house.