109 Offers on a Home?

I thought I’d heard it all when I found out a home in Allen had 43 offers the first day it hit the MLS. That was several years ago and oddly enough, about this same time of year. I don’t even know how that many people got through the home in a single day, but it must have been chaos. I heard a story today that topped that from Sean Elliott, one of our top agents.

Sean said he’s been trying to find a home for his client in Allen in the $400K range. He lost out on a home the submitted an offer on and later found out there were 109 offers on the property.

It used to be when sellers received a full price offer, they were happy, took the deal, and never looked back. But in this torrid selling season, agents are starting to leave the homes in the “available status” on the MLS even after a full price offer comes in just to see if they can get a better deal for their clients.

I’ve seen these cycles before and mark my word, this will not continue through the summer. The last time this happened, which was several years ago, by the time we got into the summer months the market had slowed to a crawl. The agents were asking themselves where all the buyers had gone. The answer is they’d already made their buying decisions.

When buyers hear stories like this it creates a sense of urgency with them. They’re thinking is if they don’t move quickly on a home, someone else will buy it, and they’re exactly right. But once homes begin to languish on the market for awhile, those same buyers begin thinking …

  • If no-one else wants it, it can’t be that great a deal and/or
  • I’ll just wait for the next one to show up

So much of the real estate business is driven by human psychology.

Of course, the higher price point homes won’t see that many offers, but we’re still seeing multiple offer situations on some homes right now. Bottom line, if you’re planning on selling your home this year, I’d recommend getting it out there. Inventory is low and as more homes come onto the market as it begins to warm up, there will be much more competition.

As always, please let us know if we can assist you with your buying or selling real estate needs.