May 2nd, 2012
With the Spring home sales season underway, many buyers are surprised to find themselves in bidding wars. Multiple offers on homes and bidding wars are becoming commonplace, due specifically to a supply shortage.
These bidding wars often involve multiple offers over asking price, with inspection waivers and other enticements for sellers. One home in Danville, California recently sold after just four days on the market at $50,000 over asking price, much to the surprise of the sellers.
According to the Wall Street Journal, “the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.”
With an extremely low inventory, buyers and Realtors are frustrated by the level of high competition in the market. To give yourself an edge, take a look at our post about Four Ways to Avoid Getting Outbid.