Multiple Offers Above Asking Price

I often get the “What’s the market like?” or the “The market’s pretty good right now, right?” questions when I go to parties or dinners with friends. As is often the case, the public seems to be a step or two behind what is really happening in the Costa Mesa real estate market.

The spring market was strong, and inventory had not increased that much in February and March. Consequently we were getting offers for over asking price, similar to what happened to my listing on 2925 Chestnut. We priced the home right, to catch as many buyers as possible, and we had several offers to choose from. It certainly makes life easier as a seller.

How often does that happen in Costa Mesa? It depends on a lot of factors. What’s the market is doing? How nice is the home? Is it priced low or priced to sell? Is it an amazing location?

All those factors add up to offers over asking price. Oftentimes Realtors will underprice a home with intent to get multiple offers and get a bidding war going. That doesn’t always work, but it is a strategy that often will get you higher that list price.

I am a big believer in getting the home ready to sell. With the right staging and preparation a home will sell quickly and for more than asking price if presented to the market in the right way. How often are there multiple offers above asking price?

Here’s an infographic that shows how this year has been dramatically different with regards to offers above the asking price. A lot of this (in California) has been driven by lack of inventory.

You can find more information about multiple offers above asking price around the web.

Costa Mesa real estate hasn’t been that different; the spring had a lack of inventory and the nicest homes are selling at or above list price.