The Spring sellers’ market here in the Bay Area’s Peninsula continues unabated, with no rest in sight for buyers. Multiple offers are still de jour on many sales in the area, with most listings selling for more than the list price.
This week marks a growing trend that could perhaps be called “buyer’s revenge.” Tired of the constant whiplash inflicted on them by sellers hosting an offer presentation rodeo and then squeezing out every drop of blood they can (wow — three unrelated metaphors in one sentence!), buyers are backing off and becoming a bit more patient.
Anecdotes abound this week about properties that had a dozen offer “maybes” turn into only two real offers. On some other transactions there were more offers — say, 6 to 10 — but the final price was only a few percentage points above the list.
Buyers seem to be getting more patient, more sophisticated, more value conscious. They realize that if they pile on during a listing presentation and drive the price of a property up by 20%, that sets the benchmark on the next properties they bid on.
Anyone else seeing this?
(Image courtesy of www.necksurgery.com)
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Tags: Buyer and seller tips, Consumer, For buyers, For sellers, Industry, Multiple offers, Palo Alto, Real estatePossibly related posts
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4 responses so far ↓
1 Lenore Wilkas // Mar 12, 2007 at 10:39 pm
Hey Kevin, head a little north to the Burlingame, San Mateo, area and we’re seeing multiples going above the asking price, just like the old days. One property had 18, yes, 18 offers. We’re regularly seeing 4 or 5 offers and they’re ending over asking, too. I don’t see this ending until we see a more even market. Right now, there are loads of buyers out there and too few homes to buy unless you’re at the high end of the spectrum. If you’re at the lower end, say just under $1 million, the prospects are not good. I know it’s the same in Palo Alto, Menlo Park and in parts of Mountain View, too.
Last year people were sitting out. I’m not seeing it now. The whip lash is happening with agents. Is it good? No but it’s reality.
2 Kevin Boer, Realtor, 3 Oceans Real Estate // Mar 13, 2007 at 7:55 am
Hi Lenore,
Interesting. Perhaps the “hold tight and wait it out” syndrome was an isolated one, just for a while in the last 10 days.
And speaking of whiplash, I should head to my chiropractor.
3 Sunil Sethi // Mar 16, 2007 at 2:27 am
San Francisco is still burning hot. A client of mine said he bid on a property in Noe Valley, that had out over 50 disclosure packets out, and got 30 offers, and went at least 15% over asking.
4 Multiple Offers Up Again: Chiropractors Still in Business | 3 Oceans -- The San Francisco Bay Area Real Estate Blog // Mar 20, 2007 at 6:40 pm
[…] Previously I reported that buyers appear to be more patient, less ready to pile on, and generally doing their best to avoid “buyer whiplash.” […]
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