Why Are There Still Multiple Offers In A Buyers Market?
I was pondering this question today in the context of one of our listings. The answer is simple:
Fear of Loss.
This house in Larkspur, on the lagoon, has been going through the normal sales cycle in Marin right now.
It’s been on a little over 100 days, and had a couple of price reductions. It went into contract recently with two offers.
This has been happening quite a bit lately. It also happened on a fourplex on Mission in San Rafael this week.
What happens is that buyers wait and watch, wondering if the price will fall, but they still really want the property. Suddenly, someone else decides they want it. They have to have it also - either they really do want it, or the fact that now someone else does also makes it more desirable.
Boom. Multiple offers, even after 100 days on market.
Remember, if you’re watching a property, you may not be alone…….
[…] the vast majority of the low offers don’t go through. The reason, as noted in an earlier post, is that when properties are overpriced (and plenty of them are!), the typical pattern is that […]