Crazy Bidding Wars! How Long Do You Gather Offers Before Responding?

By
Real Estate Agent with Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills SA5376460000

Crazy Bidding Wars!  How Long Do You Gather Offers Before Responding?

Things have gotten out of hand!  The Phoenix housing market is so heated up.  While attending our mandatory Ethics Class (quadrennial requirement) on Monday, our instructor told us that someone had 91 offers on a listing!  91 OFFERS.  That’s just nuts

How on earth can we be fair?  Do we wait a week to Short Salegather all offers?  Do we wait 3 days?  Or do we wait 24 hours?  There has to be a meeting of the minds to make everyone happy. I’m thinking of the middle answer.

And because regular sales and REO's are moving so fast, investor activity has trickled over into short sales.

Last night, I listed a short sale that is a real fixer upper  And I don’t say that lightly.   This home needs so much work and a roof that a lender wouldn’t even finance it.  So, I list it as a cash only sale.  Thankfully, I’ve only received 5 offers in less than 24 hours.  And thankfully, no one is trying to pay too much.  Having a a real conscience about values here, this little guy has got to be worth no more than the highest offer and that means a realtor is buying it, earning a commission, and has a great crew of tradesmen.  That’s the best circumtances for this wanna be house.

The bright side is that once again, this little house will shine.  It’s the ugliest duckling in the neighborhood, but not for long.  The neighbors will once again be proud to live next to it.  And one more short sale seller will be relieved of this little coulda woulda shoulda home and can move on with their life in another state.

Posted by

Signature

Google plus 1

 

 

         Find me on Google!

 

RE/MAX Excalibur Realty                         Green Realor, Scottsdale, AZ

21803 N Scottsdale Rd., Suite 100                               

Scottsdale, AZ  85255

(602) 620-2699   DIRECT

(480) 355-3480   FAX

www.RelocatingToScottsdale.com

www.GotGreen.info                  facebook   google plus   twitter   youtube   linkedin   pinterest   

 Subscribe to Jan's Green Blog, Scottsdale, AZ! by Email" target="_blank">Subscribe to my Blog! 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Arizona Maricopa County Phoenix
Groups:
Investment Property (USA)
Dedicated Bloggers
Posts to Localism
Addicted to Active Rain
BananaTude
Tags:
short sale agent
phoenix housing market
foreclosures
short sales

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,239,326
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

It's always great to hear that those fixers do get fixed Jan. There is hope for any home!

Jun 13, 2012 12:15 AM #1
Rainer
185,098
Irene Durocher
Coldwell Banker BUYERS AGENT - Boca Raton, FL
homesweethome4u@att.net

Hi Jan, it is good news that homes are going quickly. But "holding out" for

over 90 offers is crazy. Let's hope a bidding war is not the wave of the future of real estate.

Jun 13, 2012 06:51 AM #2
Ambassador
857,939
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com

The more bids the crazier and more heart burn one can get. 

Jun 13, 2012 10:37 AM #3
Rainmaker
473,406
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Tom - thanks.  And if any home could use the help, it's this one!

Irene - I hear you.  My seller is waiting to see if his neighbor bids on the house.  I just received offer #8 tonight!

John - Heart burn is us!

Jun 13, 2012 09:30 PM #4
Ambassador
946,776
Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

thanks for letting me know about this one, I have had the same feelings about a lot of fannie mae homes with the constant requests for us to submit our highest and best offer, over and over.

I never go for the bait, its better to not buy than to pay too much.

Jun 14, 2012 01:03 AM #5
Ambassador
1,082,558
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Jan there are some crazy bidding wars going on around here.  I heard of one the other day with 31 offers.  I was at an inspection where there were four inspectors there at the same time.  Here there is usually a published date when offers are going to be looked at---3 days---5 days whatever----some times apparently no timeline.  Some areas of town are hotter than others.

Jun 14, 2012 07:20 AM #6
Rainmaker
892,863
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jan, its the sellers decision on how to handle multiple offers. Unless otherwise specified by the seller, it is FIFO. The seller can request offers to be held for a certain date, but it is ultimately their decision and not the agent's.

Jun 14, 2012 07:39 AM #7
Rainmaker
313,710
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

It seems that things are heating up all over. Did someone send out a signal or what? Oh, I'm not complaining.

Jun 14, 2012 07:59 AM #8
Ambassador
1,533,458
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The time is distated by the degree of activity, If a new listing gets a lot of chowing requests within the first day, then wait 4-5 days before opening the bids,, and let all know at the same time. A Multiple offer form doesn't hurt as it weed out the low ballers

Jun 14, 2012 08:10 AM #9
Rainer
129,436
Andrew Martin
Keller Williams - Danville - San Ramon, CA

In my market, listing agents collect offers until they write their own, and then they stop and wow, what a surprise, they double ended it. Most of the time here there's no use writing on a hot listing. The listing agent will "win" every time.

Jun 14, 2012 08:18 AM #10
Ambassador
1,091,116
Bryan Robertson
Catarra Real Estate, Inc - Los Altos, CA
Broker, Author, Speaker

I was the winner in a sale with 34 offers and the agent had very simple rules; all offers by a certain date and time.  That time was about 6 days after listing and 48 hours after the last open house.

Jun 14, 2012 08:58 AM #11
Rainer
136,154
Brent & Deb Wells
RE/MAX Four Corners - Prosper, TX
Your Collin County Realtors

Jan,

We have been getting multiple offers on most of our listings in the last 4 months. We talk with our seller and get their  direction on how long to accept offers. We put out a call for 'highest and best' and then present them to the seller. 

I could not imagine having 90+ offers on one property, its a beating to present 10 offers!

- Brent

Jun 14, 2012 09:19 AM #12
Rainmaker
473,406
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Bob - I hear you!

Charles - amazing!  4 inspectors?

Michael - FIFO sounds like the stock market!  Here in AZ it is common to hold all offers and let the seller decide.  We're in a sellers market for prices under $300,000, so it's crazy busy!

Sandy - Yeah - my line - "someone turned on the faucet in January and it's been non-stop!"

Ed - yeah I hear you.  We aren't doing a multiple offer form because it's a short sale and the bank will ultimately decide on the price anyway.  We're just picking the best offer and running with it.

Andrew - that's too bad.  I have never sold my own listing and especially not on a short sale.  I don't want anyone coming back to me with questions as to why I sold it and excluded anyone from a sale or purchase.

Bryan - good for you!  That is a simple way to do it.  Similarly, I closed on a sale 3 weeks ago wherein I was the winning "bidder" of 33 offers.  We were both in the same boat!

Jun 14, 2012 09:23 AM #13
Rainmaker
473,406
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Brent - Good call on how to handle multiple offers!

Jun 14, 2012 09:24 AM #14
Ambassador
953,199
Amanda and Jared Christiansen, YOUR Fort Wayne Realtors
Century 21 Bradley (260)704-0843 - Fort Wayne, IN
Century 21 Bradley.

Way to go Jan!  We haven't faced that battle yet, but are looking forward to it!                                                                  

Jun 14, 2012 10:43 AM #15
Rainmaker
473,406
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Thanks for commenting!  Go get 'em!

Jun 14, 2012 10:53 AM #16
Ambassador
2,394,254
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Jan, so often, the winners of a really bloody bidding war will wake up a few days later with a "what was I THINKING?' reaction.  And they just want out.  I think offers are like men.  You need one really, really good one.

Jun 14, 2012 07:57 PM #17
Rainmaker
595,170
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Seems like a good problem to have.   I think it should be up to your seller - if they want a decision and not wait because they have a great offer - then don't wait.

Jun 14, 2012 08:29 PM #18
Rainmaker
946,302
Bob & Leilani Souza
Souza Realty - Roseville, Rocklin, Lincoln, Loomis, Granite Bay, Penryn, Newcastle, Auburn, Meadow Vista (California) - Roseville, CA
Placer County, CA: Foreclosures, Auctions, Rentals

Jan, 91 offers on a home officially tops my list of the highest amount I've ever heard...wow!!! :)

In our area, what Andrew described in comment #10 happens a lot with REOs and select brokers. When I see the majority of their listings getting double-ended (and a couple of times for less than what my all cash client offered), I don't even show their listings anymore.

Leilani

Jun 15, 2012 01:09 AM #19
Rainmaker
473,406
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Patricia - I love your analogy!  This one went to contract today and I hope the new buyer will make it beautiful again!

Joy - You're right.  It is up to the seller and I followed his directions.

Souza Realty - Yes, 91 topped my list as well. We don't end up double ending our listings as much as what  you're experiencing.  That leaves a bad taste in my mouth!

Jun 18, 2012 08:09 PM #20
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
473,406

Jan Green

RE/MAX Excalibur Scottsdale REALTOR®, GREEN
Ask me about Homes in Scottsdale!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information