It is not uncommon for homes marketed FOR-SALE to procure 5, 10, 15, or even more offers to purchase within a few days of coming on the market.
There are a lot of reasons the market is exceptionally hot today. The leading factor is record low mortgage rates. The monthly and annual payment savings are jaw dropping and has been the catalyst to a tsunami of buyer interest. Another factor is the lack of available homes to purchase. There are fewer homes coming on the market right now because it is still the Winter Market. The vast majority of homeowners opt to “wait until the spring” to market their homes. Spring does not begin until Saturday, March 20th. Until then, there should not be the expectation of a bunch of new homes hitting the market. With demand so hot, many homes are not available to purchase because they are in escrow. With more escrow activity, the supply diminishes. Also, fewer homes came on the market in January compared to the 5-year average, 9% less, or 266 missing FOR-SALE signs. That may not be a ton of missing signs, but it is adding to the problem.
A Tip to Sellers:The best strategy to obtain the top dollar for a home is to carefully price a home according to its Fair Market Value.
This current market may be incredibly hot, especially below $1.25 million, that stretching the asking price and even overpricing a home may still result in eventually achieving the ultimate goal in selling.
HOWEVER, it will be at the expense of leaving money on the table.
Stretching the asking price and overpricing results in fewer offers to purchase and not being able to properly tap into the auction-like atmosphere in selling a home today. When a home is properly priced according to the most recent comparable and pending sales, taking into consideration the location, conditions, upgrades, and amenities, it will procure the most interest and the highest number of multiple offers possible. Pitting all of these offers against each other will instigate a bidding war where one buyer outbids the rest, often for higher than the asking price, and, in some cases, much higher.
Click on the image below the Read the Orange County Housing Report.