Market Conditions in Atlanta>Question Details

Trulia Atlan…, Home Buyer in Atlanta, GA

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

Asked by Trulia Atlanta, Atlanta, GA Tue Mar 5, 2013

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Sally English’s answer
New listings where the homes are in top condition and fully updated are seeing multiple offers within the first few days of listing. The "doggies" where houses need a ton of work are also seeing multiple offers when priced right. Everything in the middle is kinda chugging along.
0 votes Thank Flag Link Tue Mar 19, 2013
That is exactly my point, not only was it not the nicest, it was not even the largest - but whatever you want to call the water (pond or lake) - it was an exceptional view out of every rear window and from both rear patios. Very resort like - the intangables - the feel of a property are everything to a buyer - if it doesn't resonate with them as home - nothing else matters.

Buying a home is an emotional event - with investors it is all about the numbers - with most buyers its a combination of the two.
1 vote Thank Flag Link Mon Mar 11, 2013
I had two through that one - while the lot was nice the home itself didn't support being the highest in there. We also looked at 4072 which is a much nicer home, fully updated with not as nice of a setting but still on the pond (I have trouble calling that a lake).
Web Reference: http://www.hmtatlanta.com
1 vote Thank Flag Link Mon Mar 11, 2013
A recent East Cobb home in the Walton High District (and on a lake) sold for $70K above the appraised price - the buyer just paid the difference in cash. Not many places in metro Atlanta where that will happen. The power of outstanding public schools - and water vistas.

And I turned that listing down because the owner wanted more than my suggested price which was well above the most recent comps and would have set a new price record - something I am pretty good at - ouch. I knew enough to ignore recent comps based on the usual sticks bricks and square feet - and still got it wrong. That home sold in 10 days and set a new neighborhood price record over $150K above 2006 prices - and $50K above my already high suggested price. The buyer wasn't detered by the appraisal - he wanted that one of a kind special home.

Robert Whitfield
Broker/Owner
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Advantage Realtors
678-585-9691
RobertWhitfield.com
TheHomeBuyersRep.com
Corporate Relocations | New Construction | Luxury & Investment Properties
1 vote Thank Flag Link Mon Mar 11, 2013
Wrote two contracts this weekend and both are multiple offers, both at or overlist going in. Not cheap either - 1.1M list and 574,900 list. Both buyers are committed to winning the homes and both understand that they will be at the high side for their market.

Also had a listing we put up Friday, as of this Monday morning there are 4 offers; two at list, one just under and one about 5% off.

Good properties in good areas are seeing this - but caution must be exercised lest we blow up that bubble.
Web Reference: http://www.hmtatlanta.com
1 vote Thank Flag Link Mon Mar 11, 2013
Properties are moving briskly (due to pent up demand) and that will only increase as we move toward summer.

I have called to set appointments to show clients homes only to find many had multiple offers or were already under contract - its almost like 2006 again - the perfect storm for the seller.

I just won a deal for a client by moving in on a home that already had a pending offer under negotiation and simply made a better offer than the original buyer (still under list). By making a better offer and playing hard ball time wise, we snatched it away from the original buyer.

You have to get creative for your clients sometimes when the market is brisk - or when they like a particular area with no available listings.



Robert Whitfield
Broker/Owner
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Advantage Realtors
678-585-9691
RobertWhitfield.com
TheHomeBuyersRep.com
Corporate Relocations | New Construction | Luxury & Investment Properties
1 vote Thank Flag Link Sun Mar 10, 2013
Overbidding is definitely happening at this time. I recently found a property for my client in the Brookhaven area before it was on the market and put an offer in. I didn't suprise me to much that an offer had already been made on the property. It did suprise that there was 5 offers though. It is becoming much tougher to find properties for buyers.

Jeff Jackson
Prudential Georgia Realty Buckhead
jeff.jackson@prudentialgeorgia.com
404-909-1965
1 vote Thank Flag Link Wed Mar 6, 2013
Buyer are finding out that offering anything less than List Price may very well result in losing the property. Many have been going in at or above List Price and many are still not getting the winning offer.

The act of under bidding on homes is not showing much success now. Buyer are often finding this out the hard way.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Tue Mar 5, 2013
The over bidding is outrageous now. It's really sad too because as owner occupants attempt to purchase and are qualified or prequalified for loans, whatever price they offer has to appraise for that amount and/or have cash to bring to the table for the difference ON TOP of closing costs and earnest money/down payment. This makes it very difficult for owner occupants up against investors. I am not knocking investors at all....I have a couple of my own, but, it is much more difficult today for owner occupants because of this. In my humble OPINION.
1 vote Thank Flag Link Tue Mar 5, 2013
I am seeing multiple offers, as I am sure most of us are.

I am not seeing too much overbidding.

In a multiple offer situation the strongest offer wins.

Which does not ALWAYS mean the one with the highest offer price. Loan type, amount of down payment, and even whether are not the buyer will occupy the property seem to play a role in which offer gets selected..

Kawain Payne, Realtor
0 votes Thank Flag Link Fri Mar 29, 2013
That's the way it goes with buyers - we advise and inform our clients, and in my and your case they get a lot of extra information they couldn't get anywhere else, but ultimately the buyer will choose what is right for them. All of my buyers take my advice on what NOT to buy, and are elated to get that advice, otherwise on sound (financially and structurally) homes, I dont push or sell any home to them, they do the choosing.

When it comes to sellers, though, I am always looking to push the envelope and get them max dollars based on the properties metrics which sometimes includes more than available numbers and market stats.

Got to go look at a potential $1M+ slice of land to see if it can work for developers.
0 votes Thank Flag Link Mon Mar 11, 2013
Some buyers like what they like - my two that looked in there ended up in North Fulton, one larger home and one new home
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Mon Mar 11, 2013
I just pulled it up - the owner shot me a line - he told me is sold for the list price and I see it closed for $665K - still a new price record but not that far above my suggested price - I feel better now - I think.
0 votes Thank Flag Link Mon Mar 11, 2013
I don't remember the address - it's about the 5th home on the right in Penhurst Sub - I was going to list it for $640 - 650k - the owner listed it for $714 and it sold in flash. The home was nice but not stunning - the lake lot was stunning.
0 votes Thank Flag Link Mon Mar 11, 2013
Rob - which one in Walton?
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Mon Mar 11, 2013
In Michigan most homes are multiple offers leading to a lot of overbidding.
0 votes Thank Flag Link Sun Mar 10, 2013
In Michigan there is a lot. I saw one house this weekend with clients. They had 16 offers on it. Cash or over bid will win it
0 votes Thank Flag Link Tue Mar 5, 2013
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Tue Mar 5, 2013
Love the article. Cinched it in a nutshell.
Flag Tue Mar 5, 2013
I have placed 3 bids on HUD properties for a client at asking price and we have lost on all 3 due to buyers over-bidding.
0 votes Thank Flag Link Tue Mar 5, 2013
In the 4th quarter of 2012 about 22% of transactions went for more than the listing price.
0 votes Thank Flag Link Tue Mar 5, 2013
You cannot believe how much over biding is going on.
0 votes Thank Flag Link Tue Mar 5, 2013
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