How to win a Real Estate Bidding War

and other real estate news today…..

  1. HOW TO WIN A REAL ESTATE BIDDING WAR?

    “I don’t care that I’m overpaying’: Houses are selling over asking price.”
Photo by ANTONIO MARTINEZ

Mystoura “Misty” Afolabi, a real estate agent in the Los Angeles area, was working with a young family for more than a year, trying to find them a home. But every time they saw a house they liked, they were outbid.

Then in March, the couple decided to bid on a house even before they had a chance to see it.
The two-bedroom, two-bath property was listed at $585,000, well below market value – a tactic increasingly used to trigger bidding wars in a super-competitive, pandemic housing market. The story continue here.

2. RACISM IN HOMES APPRAISALS?

Black homeowner had a white friend stand in for third appraisal. Her home value doubled.

INDIANAPOLIS – Carlette Duffy felt both vindicated and excited. Both relieved and angry.

For months, she suspected she had been low-balled on two home appraisals because she’s Black. She decided to put that suspicion to the test and asked a white family friend to stand in for her during an appraisal.

What happened next? Well, find out here…..

3. HOW HARD IT IS TO BUY A HOME RIGHT NOW?

Beyond crazy and frustrating.

The pandemic-era real estate market has emerged as a windfall for sellers and a headache for buyers. A shortage of for-sale homes continues to boost prices across the nation by double-digits — and is pushing house hunters to go to extremes to win bids.

Take a home near the Microsoft campus outside of Seattle that was listed for about $725,000. The buyers made a bid without seeing the home, offering $400,000 above asking price and waiving all contingencies — meaning no inspection or mortgage-financing contingencies were required, recalled Ryan Dibble, the chief operating officer of Flyhomes, which represented the seller in the deal.

Wow, that’s aggressive! But that’s going on everywhere in the country. Increasingly, offering above asking price isn’t enough to win a bid in the ultra-tight pandemic housing market today.

Matthew Karlsson, who started house hunting with his fiancee earlier this year in the Boston area, estimates they viewed about 100 homes and spent much of their free time combing through listings, going to showings and making offers.

Karlsson said they were “maybe a little naive” at the start of the process. Some open houses were shut down before they got to see the home, such as one home that closed its showing early after 150 people had come through to see it, he recalled.

In the end, one of their offers was accepted in mid-April, and they are preparing to move in later this month. To win the bid, they offered $90,000 over asking, settling on a price just over $700,000. They also waived the normal inspection contingency.

This market is bad news for buyers from A to Z. What if you are a first-time buyer and you are young and you don’t know if you want to live somewhere for more than three years? The answer is brought to you by CBS News.

Cash is king

Cash is king. We know that, yet you can win a real estate bidding war through other clever tips. Listen 👂

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