The New Normal

new-normal

Multiple offers are sort of common again in the Mid Peninsula and last week I had some clients who wrote an offer on a 3 bedroom house on Exeter in San Carlos that was listed for $749,000. We came in at $750,000 and lost it…the house ended up selling for $780,000. You know what? The scenario of large overbids is really rare in my experience. I’ve been involved in 18 multiple offer events, with either a buyer or seller, in 2009 and with the exception of five offers made on incredibly discounted REO’s all the rest sold right around the asking price. The overbids were at most a few thousand dollars. My listing at 900 Flying Fish got 8 offers…and only one came in over asking. It went over at total of $888.00. One offer came in $150,000 under asking (a hilarious waste of time!).

At least for the time being, this is the new normal in Peninsula home sales. In 2009 161 homes have sold in Foster City…both single family and condo/townhouses. Of those, only 4 single family and 18 condo/townhouses sold at or over their asking prices. 72 single family homes and 81 condo/townhouses closed.

I did a little study the other day and discovered that in the price range over $1,150,000 in Foster City in 2009 the average sale came down in price an average of 11% so far this year.

Clearly, there are situations whereby a large overbid is entirely appropriate and necessary. If there’s 22 offers on the property you want, you’re not going to get the place with an offer at asking. That auction at 857 Canis springs to mind that came on the market at $300,000 for a 3 bedroom, 2.5 bath townhouse at Isle Cove. It sold for $564,500…and probably should have. Nobody else has dared to price a home that aggressively but there have certainly been other discounts that have prompted multiple offers…and overbids. It’s certainly not the norm, however.

This is clearly not the time to go crazy with an overbid. If you lose a home to somebody that does…that’s OK. There will be others and the odds are greatly in your favor that you’ll get a home, at worst, around the asking price.

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