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How much over-bidding is going on at the moment?

Asked by Trulia Washington DC, Charlotte, NC Wed Apr 3, 2013

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Hi Trulia, the DC Metropolitan area is experiencing a high volume of overbidding.
0 votes Thank Flag Link Sun Apr 7, 2013
Here in Phoenix, our inventory is low and many buyers are in competion for the same property. In a multiple offers situation, the offer price is more likely to go over the list price. When the buyer is planning to finance any part of their purchase, the buyer and seller both must be aware of the risk that the property may not appraise for the contract price. Both buyers and sellers should discuss current market factors such as this with their Realtor and focus on strategies that will generate the best chance of achieving their real estate goals.

Maureen Thelen
Designated Broker
Urban Premises, LLC
http://urbanpremises.com
maureen@urbanpremises.com
602-791-0898
0 votes Thank Flag Link Thu Apr 4, 2013
There are many many multiple contract presentations in our market area (Bethesda, Chevy Chase,Rockville, Potomac, NW DC, Capitol Hill (NE,SE). Keep in mind that "overbidding" is primarily dependent on a concious pricing strategy to encourage multiple offers, If an agent and the seller agree to list ia home close to a market derived price, there is a chance in a low inventory market for multiple offers, some of which may escalate to over full asking price. Also keep in mind that the price aproperty closes for establishes the "market price" and that is what a willing buyer and seller come to an agreement on in a purchase contract.
R Scott Mattingly,
Long and Foster
0 votes Thank Flag Link Thu Apr 4, 2013
Alot! .. inventory in DC is low. It's all relative to your list price, condition, location etc., but overall this is absolutely a Sellers market. The pickings are slim and with so many homes receiving multiple bids, Buyers should expect to write offers over list price if they are serious and looking to ratify.
0 votes Thank Flag Link Thu Apr 4, 2013
None.
The value of real estate is determined by what a willing buyer and willng seller agree upon.
So, what condition are you imposing that would INCORRECTLY be called overbidding.
0 votes Thank Flag Link Thu Apr 4, 2013
DC metro is red hot and the inventory is very low. Combined that with low interest rate and you have a perfect storm for a seller's market and multiple offers on reasonably priced properties and price increases in many areas.

In this climate, buyers have to submit their highest and best at the onset and unless the property is vastly overpriced, buyers will have to come in over asking and restrain from asking for closing help.

The above is true for most, but not all, areas in DC metro. Not sure how much longer things will be like this but I know that the market will calm down at some point.
0 votes Thank Flag Link Wed Apr 3, 2013
In Orange County, California expect overbidding on most entry level homes and on many move up homes.
0 votes Thank Flag Link Wed Apr 3, 2013
It all comes down to market value. A pretty house in a good location that's in good condition will attract buyers. There may be, actually right now there will be, multiple offers. If the listing price is competitive buyers will try to improve their offer with sweeteners other than unsustainable high numbers. The property still must appraise and the seller doesn't want to lose time and a reasonable buyer by chasing a fantasy. There are agents who will suggest to the seller to set the list price below market to gather a lot of interest and truly have a choice of offers. You might call this situation over-bidding but all it's doing is eventually placing the property at market value.
0 votes Thank Flag Link Wed Apr 3, 2013
Hello,

In DC Metro area we do see multiple contracts on properties that are well priced in desired locations.

As to over bidding that is relative to the list price. If it is at the fair market value, the price is on average around the asking price, but the sellers end-up choosing the buyer that is best financially positioned and the one with least contingencies, if any.

The current trend is rally making it hard for the 1st time home buyer, or the purchasers usingVA, FHA or any 3-5% down payment programs. It seem that this trend is to continue for while longer unless more properties come to market.

BORIS MIRIC - Realtor Serving DC–VA–MD
Certified Investor Agent Specialist (CIAS)
Certified Distressed Properties Expert (CDPE)
Office: (202) 459-4700 | Fax: (202) 318-6520
Web Reference: http://www.borismiric.com
0 votes Thank Flag Link Wed Apr 3, 2013
Over bidding is happening here in California! It all depends on the house!

It's crazy!

Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
0 votes Thank Flag Link Wed Apr 3, 2013
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