I shared that two Seattle homes I recently toured got 20+ offers each. Wowzas. But before you draw conclusions…First here are three questions to ask yourself:
- What was the sellers pricing strategy?
- How common are results like these?
- Is there something unique or special about these properties
Let’s dig into these questions a little more.
What was the seller’s pricing strategy?
Every sales price is a strategy. Rewind. One more time.
Every sales price is a strategy.
For every. single. product. and that includes real estate.
Some agents underprice a property to drive traffic and get lots of offers. These listings are designed to get lots of offers. Bring in lots of traffic because…hello…bargain! You can almost smell a bargain, right? If the strategy works (and it is an if not when), many offers will drive the sales price well above the list price.
Others price within range of the market value. Recent sales for similar properties in the last 30-60-90 days lend a market value range to a home. These prices are closer to what the data says the home is worth or what price a seller is willing to accept.
Analysis: I dug into the data on these two homes and they were already priced at the high end of market value. So they blew the data away. This also tells us the buyers must be bringing lots of cash because these homes won’t likely appraise.
Is everyone getting results like these?
Are results like this common? No, not every home gets 20 offers or even close to it. But the multiple offer trend endures.
Were these homes exceptional in some way?
Were these homes particularly unique? Exceptional means they had amazing views, a coveted and uncommon floor plan, a fantastic location etc.
No – I wouldn’t say so – but on that particular week they were the only game in town. Classic supply & demand.