Multiple Offers Are Back?

[AJ Wong]

Howdy all just looking for some insight from other brokers, lenders and investors in the area and beyond..

I've posted regarding the state of the Oregon & southern California Coastal market, and as expected we've seen housing and market activity pick up notably in the past 3-4 weeks. 

Two recent multi unit closings, listings that were available for months pending and even a few properties with offers in that have multiple competing offers. 

Are you all seeing the same sort of market activity intensity? 

I suspect as the weather warms and rates stabilize or even drop we could see a mini 'market boom.'

Obviously great for 'business' but perhaps not as favorable environment for investing as there is increased competition? Thoughts? 

[Jay Thomas]

The Real Estate market has been experiencing an unprecedented surge in prices due to the lack of inventory. Buyers are now being quoted 5.5%, which is a huge jump from two years ago.

Yet, I'm not convinced that this kind of growth is sustainable in the long run. Inflation will eventually start rising, and this could lead to a drop in Real Estate prices when more homes come on the market. Furthermore, many people seem to be overspending right now - some home values have even doubled in just five years! This isn't normal history repeating itself, so it's my opinion that we should expect Real Estate prices to fall off soon.

Those who told me not to buy Real Estate back in 2017 are now the ones screaming to buy Real Estate now. This could be a sign of people getting caught in the hype and overspending - something that I'm not willing to do without more certainty. Real Estate is an expensive investment, and it's important to research thoroughly before making any big decisions.

The Real Estate market has been boom-and-bust for decades, so it's best to proceed with caution when investing in the property market. Doing your own research, reading up on trends, and obtaining professional help can all contribute towards making smart Real Estate investments that will pay off in the long run.

It may seem tempting to jump on board the current Real Estate wave, but remember: don't let the hype dictate your Real Estate decisions. Instead, take a step back and evaluate your options carefully before committing to any big purchases. Good luck!

[Pandu Chimata]

I am listing my investment property next week. This is from Southern California, riverside county. The house is on a tourist destination, on mountains. I have been fixing up the house for several months now. Lets see how this journey unfolds. 

[AJ Wong]

Quote from @Jay Thomas:

The Real Estate market has been experiencing an unprecedented surge in prices due to the lack of inventory. Buyers are now being quoted 5.5%, which is a huge jump from two years ago.

Yet, I'm not convinced that this kind of growth is sustainable in the long run. Inflation will eventually start rising, and this could lead to a drop in Real Estate prices when more homes come on the market. Furthermore, many people seem to be overspending right now - some home values have even doubled in just five years! This isn't normal history repeating itself, so it's my opinion that we should expect Real Estate prices to fall off soon.

Those who told me not to buy Real Estate back in 2017 are now the ones screaming to buy Real Estate now. This could be a sign of people getting caught in the hype and overspending - something that I'm not willing to do without more certainty. Real Estate is an expensive investment, and it's important to research thoroughly before making any big decisions.

The Real Estate market has been boom-and-bust for decades, so it's best to proceed with caution when investing in the property market. Doing your own research, reading up on trends, and obtaining professional help can all contribute towards making smart Real Estate investments that will pay off in the long run.

It may seem tempting to jump on board the current Real Estate wave, but remember: don't let the hype dictate your Real Estate decisions. Instead, take a step back and evaluate your options carefully before committing to any big purchases. Good luck!

 Good points but it’s not hype if you have money to invest or need to live somewhere. People need property. Before almost anything else. 

[AJ Wong]

Quote from @Pandu Chimata:

I am listing my investment property next week. This is from Southern California, riverside county. The house is on a tourist destination, on mountains. I have been fixing up the house for several months now. Lets see how this journey unfolds. 

Great timing! Costs are way down, if you need help sourcing wholesale materials I have some good local contacts… Is the property eligible for vacation rental usage or licensing/permits? If so could dramatically  increase the desirability and buyer pool. Let me know if I can be of any service or support! 

[AJ Wong]

Quote from @Luke Stewart:

I walked away from a duplex in denver recently, they had another offer with an "unlimited escalation clause" and "large appraisal gap". 

Seems like a prudent move..always another. 

[AJ Wong]

Quote from @Brian Ellis:

Buyers are getting quoted 5.5% right now. It was only a matter of time before they came back out. It only makes sense with the lack of inventory.

I dont think its sustainable, though. We should see inflation tick back up. 

My uneducated guess is this is the last hoorah before we see inventory pick up, and prices fall off a cliff. People are over spending in all areas of their life. Some home values have doubled in a short 5 years. Thats not normal. History repeats itself, and that certainly isnt an example.

The people that told me not to buy back in 2017, are the ones who are screaming BUY NOW. That gives me a clear indication of whats really going on. 

Whoa. 5.5%!?  

[Luke Stewart]

Quote from @AJ Wong:

Quote from @Luke Stewart:

I walked away from a duplex in denver recently, they had another offer with an "unlimited escalation clause" and "large appraisal gap". 

Seems like a prudent move..always another. 

Easiest decision I have ever had to make.

[Pandu Chimata]

Quote from @AJ Wong:

Quote from @Pandu Chimata:

I am listing my investment property next week. This is from Southern California, riverside county. The house is on a tourist destination, on mountains. I have been fixing up the house for several months now. Lets see how this journey unfolds. 

Great timing! Costs are way down, if you need help sourcing wholesale materials I have some good local contacts… Is the property eligible for vacation rental usage or licensing/permits? If so could dramatically  increase the desirability and buyer pool. Let me know if I can be of any service or support! 

This property is eligible for vacation rental. In fact I took STR permit for this property before county stopped issuing new permits.

[Stephen Dispensa]

I've been seeing some stuff go quickly here in Tampa the past few weeks. Couple of things I've noticed: 

- Some recently completed flips got pulled off the market and leased out instead, which drove inventory down a little.

- Seller's got more realistic about pricing across the board in January. 

- Market tends to heat up a bit down here starting in February, combined with lower inventory starts to bring back multiple offer situations. 

Getting multiple offers is easy enough. One of the first lessons I learned in Real Estate is "price it right and let them fight." 

Sellers will almost always want to list for more than what a property is worth. And this is always the biggest mistake you can make. When trying to get the highest price with the best terms for a property, you want competition among buyers. 

I always tell my sellers, imagine a hurricane is coming. You're well supplied, you've got a couple cases of water at home, you've got food and flashlights and candles. You're out at the store one last time before the storm hits, and you see a single case of water on the shelf, do you buy it? Of course you do. Because there is no greater motivator than a diminishing supply of something you need. 

If you host an open house and there's 50 people there, they're all concerned that the other buyers are going to outbid them. You've just made your listing the last case of water on the shelf before the storm hits. Let them fight over it and get yourself max dollar. 

[AJ Wong]

Quote from @Pandu Chimata:

Quote from @AJ Wong:

Quote from @Pandu Chimata:

I am listing my investment property next week. This is from Southern California, riverside county. The house is on a tourist destination, on mountains. I have been fixing up the house for several months now. Lets see how this journey unfolds. 

Great timing! Costs are way down, if you need help sourcing wholesale materials I have some good local contacts… Is the property eligible for vacation rental usage or licensing/permits? If so could dramatically  increase the desirability and buyer pool. Let me know if I can be of any service or support! 

This property is eligible for vacation rental. In fact I took STR permit for this property before county stopped issuing new permits.

 Great job! Let me know if you'd like any projections from Vacasa Management team to support your sale. Long shot might have an investor or two depending on specifics. A few are basically open to anywhere in OR or CA that makes sense. 

[Pandu Chimata]

Thank you for the offer. In fact, I did receive Vacasa projections for this property. 

[AJ Wong]

Quote from @Pandu Chimata:

Thank you for the offer. In fact, I did receive Vacasa projections for this property. 

 Awesome. I work on the RE brokerage side so if you end up listing with a brokerage let me know we can give you the BP special investor treatment and market it to our vacation rental buyer list of nearly 1K qualified buyers..I'm presently in the SD area and beyond if you'd like to connect. Good luck! 

[Pandu Chimata]

Quote from @AJ Wong:

Quote from @Pandu Chimata:

Thank you for the offer. In fact, I did receive Vacasa projections for this property. 

Thank you! I will let you know.

 Awesome. I work on the RE brokerage side so if you end up listing with a brokerage let me know we can give you the BP special investor treatment and market it to our vacation rental buyer list of nearly 1K qualified buyers..I'm presently in the SD area and beyond if you'd like to connect. Good luck! 

[Dennis Nguyen]

We are starting to see multiple offers again in Washington! I would not be quick to say the market has shifted though... I'm going to monitor closely within the next month and see what happens. Might be just a small surge. 

[AJ Wong]

Quote from @Dennis Nguyen:

We are starting to see multiple offers again in Washington! I would not be quick to say the market has shifted though... I'm going to monitor closely within the next month and see what happens. Might be just a small surge. 

Yes even since this post rates are up .25-.375% which is quite significant. Let us know! 

[Lucia Rushton]

Quote from @AJ Wong:

 Yes multiple offers are back in DFW. 

[Caleb Brown]

In KC we are seeing most homes get into multiple. If you overprice it'll still sit though

[Conner Olsen]

Activity has picked up in Austin the last 3-4 weeks, surprisingly. We're still at 3.7 months of inventory so I'm hoping we don't see buyers heat up and drop that inventory level down.