From police directing gridlocked open house traffic to 40 offers for one listing, many recent real estate transactions have been nail-biters. To help paint a picture of home demand, this week Redfin released a new Bidding War Report. Using statistics compiled from over 2,000 monthly Offer Insights written by Redfin agents, the report shows that seventy-three percent of offers faced competition in April, the lowest level this year. While overall competition shrunk slightly, it was balanced by markets that are intensifying. Read the full report to see what’s happening in your area.
To see the types of homes that are targets of fierce multiple offer situations, check out this “Bidding War Mania” Redfin Collection. Running the gamut from craftsmen to in-city townhomes, these abodes span the country from the Northwest to the East Coast. You may not be able to tell from the photos why a home gets 40 offers, but in hot markets, low inventory combined with great location, design, or school districts contributes to the frenzy. In Seattle, the trend is extending to condos, as reported by Kiro7 News in their recent Condo Comeback story.
How you win a bidding war may well depend on your market. Your agent should have a feel for the market landscape, and referring to Redfin Offer Insights for your neighborhood (like Chicago, for example), can give you additional context. Winning doesn’t always require deeper pockets; in Baltimore, 52.9% of winning offers were accompanied by a personal cover letter, compared with 28.0% of winning offers nationally. If you’re seeing an interesting trend in your neighborhood, tell us about it in the comments!