52% Of Offers Are On Homes With Multiple Bids

by Redfin Blogger | 5 Comments

In July, over half the offers our agents presented to listing agents in Southern California were on homes with at least one other offer.

To Anna Nevares, our rock-star agent in San Diego, this number seems low:

It feels like almost all my clients are bidding on homes with multiple offers. Nearly every bank-owned home has more than one offer and many regular sales are also aggressively priced to attract multiple offers. If you think you’ve found a good home with a good price, chances are a lot of other buyers have also found that home.

Anna’s Tips For Multiple Offer Situations

While it can be tough to be a buyer right now in San Diego, there are certain things you can do to improve your chances of having the winning bid on a home with other offers. Check out Anna’s four tips:

  1. Be prepared to pay close to or above the listing price. Home-buyers often have to bid and miss on 2 – 3 homes with multiple offers before they understand that they need to start with a strong offer.
  2. Get the best financing. If you aren’t a cash-buyer, get a conventional loan if you can. Sellers, especially banks, aren’t that excited about FHA or VA loans.
  3. Be the first one into the pool. Especially with bank-owned homes, come in with a strong bid late so you can get a feel for what other buyers have already offer and decide where to price yours.
  4. Be patient. Multiple offer situations always take a while and if you’re dealing with a bank, they take even longer.

What are you experiences with multiple offers?

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  • Kate

    I’d like to know what the percent of multiple bid offers are on homes in the higher prices ranges, like 500k$ and up. Thanks.

  • http://blog.redfin.com Chris Glew

    Kate-
    I just looked at our July records. Of the offers we presented for homes with multiple offers in Southern California, 54% were on homes listed at $500,000 or higher.

    The median list price was $538,800.

    Chris

  • http://blog.redfin.com Mike Carr

    We made an offer on a home where 37 offers were also submitted, the house was in the low 400 range. The odd thing is that the bank began to work with offers before the deadline. How do I know that? Friday before a three day weekend they set the deadline to submit offers, the next Tuesday they sent emails that the banks were working with offers. Either banks are working on weekends and holidays or they began the process before the deadline. Honestly, I think it is a big scam. Also, people are coming in with all cash offers. So, for the average Joe with excellent credit and 20% down, good luck.

  • http://blog.redfin.com Mike Carr

    Sorry another comment, the listing agent would not tell us what the other offers were so how do you know what to offer? We offered 20k over the listing price, had a conventional loan, had high 700 fica scores, etc.. Agents/Banks need to be transparent in the offerings especially when they offers go above the listing price. Oh by the way, we are also non-contingent, so nothing seemed to help in our situation.