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2 bits, 4bits, 8; Bidding wars are back
April 25th, 2013 2:21 PM

In a market that is seemingly recovering at one of the fastest paces in a long time, offers on listed homes for sale have become so competitive it feels like the entire housing market is up for auction. 

In California, which is one of top 5 markets that was practically destroyed in the housing crash, they are seeing these bidding crazes in several of its markets.  San Francisco and Sacramento are sitting at the top with 9 out or 10 homes are receiving a shocking amount of offers.

Even the east coast in cities like Washington D.C., Boston and New York are seeing two thirds of their markets become all out bidding wars. 

Kris Vogt, manager of 14 Coldwell Banker offices in the Sacramento area says, "The only question is not whether a new listing will get multiple bids but how many it will get."

For example, a home in an Elk Grove, CA subdivision received an overwhelming 62 bids!  It finally sold for $150,000, and the original asking price was only $129,000.

Two condos in Cambridge, MA that were in the same building and also had the ability to be combined, which would create an incredible living space for someone, were listed for $800,000 each.  Offers poured in for this $1.6 million potential package deal and the property was off the market in less than 2 weeks.

"The brokers stopped taking names after the number of bidders reached 250," said Pat Villani.  Pat Villani is president of Coldwell Banker Residential Brokerage in New England.  She also told CNN Money that the buyer ended up purchasing both condos for $2 million. 

CNN dug a little further and found that 75% of Redfin agents were experiencing multiple counteroffers on listed homes, which is almost a 20% increase from the end of 2011.

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Posted by Michael Hobbs on April 25th, 2013 2:21 PMPost a Comment

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