At least 15 of the listings on the suburban fuser face have been made invisible. The situation shows how fiercely competitive real estate buyers are in the US
As a sign of the absolutely brutal market shoppers are facing this spring, a Washington, DC area home recently attracted a staggering 88 different offers, the vast majority of which were for cash.
Located in the suburbs near the country’s capital, the 1,800-square-foot Fixer upper was initially listed for $ 275,000, according to CNN, which first reported the story. After going live on a Thursday, 88 offers were received the following Sunday. A total of 76 offers reportedly contained all of the cash, and 15 were made invisible.
RE / MAX agent Ellen Coleman represented the property. Although she didn’t immediately respond to Inman’s request for comment, she told CNN she felt “like Lucy with the chocolates” – a reference to a famous episode of I Love Lucy in which the title character is overwhelmed at a chocolate factory.
“I think, ‘This is just out of control,'” added Coleman.
In the end, the home was reportedly sold for $ 460,000 to a buyer who had waived all contingent liabilities and had all of the required documentation, although it wasn’t the highest bid. Coleman said the buyer appears to be an investor planning to repair and sell the home.
While the Washington, DC home is an exception, there are many similar stories of highly competitive US markets.
For example, on Tuesday, a real estate professional on the popular Lab Coat Agents Facebook group announced that they had just lost a bidding war despite offering cash and $ 50,000 above the asking price. The post generated more than 100 comments, many from other agents who experienced the same thing.
For example, a Washington state agent responded to the Facebook post that he lost a bidding war despite having an offer that was $ 91,000 above the asking price. But other agents took this for granted. Another Washington agent said $ 200,000 is more than normal and that he recently sold a property for $ 500,000 above the price of a home.
Finally, another California agent reported that he had lost “numerous” bidding wars, even though the bids were $ 250,000 above the bid.
There were dozens of such comments on this single Facebook post, and many other conversations, including on the social platform, lamented previously unimaginable levels of competition.
The highly competitive markets in the US are in large part due to a lack of inventory, which has, among other things, resulted in the number of homes sold falling and prices skyrocketing.
Why exactly the offer is so limited remains controversial. However, a survey of 1,000 real estate agents conducted by real estate marketing company ActivePipe in early March – a survey provided by Inman – found that 40 percent of respondents viewed demand for excess buyers as the biggest contributor to supply shortages. Another 30 percent saw sellers as the biggest factor in what to buy next, while 9 percent cited concerns about COVID-19.
The survey found that agents are trying different techniques to generate more entries. In particular, 41 percent of respondents said they reach out to homeowners in desirable neighborhoods, 24 percent said they use technology to identify likely buyers, 5 percent connect with local developers, and 2 percent have targeted offers to sell through Owner.
As can be seen from the numerous Facebook comments and the Washington, DC house, there is still a serious shortage of stock.
“All day in California,” replied one person in the Lab Coat Agents group as they talked about losing bid wars.
“Right here in Colorado,” said another.
“That happens here in Utah, too,” interfered a third agent. “So crazy the whole country is on fire !!”
Email Jim Dalrymple II