Multiple Offers...Are they good? Are they fair?

I'm not going to define "good" and "fair". I'm just going to mention that it's been my experience over the years that one party favors the practice and another can't stand it. Where it gets really interesting is when the party that favors it, turns into the party that wants it abolished.

When you sell your house...if your house shows well and is priced under market value or damn close (especially in a market with low inventory and low rates) you'll likely do quite well and be happy that you attempted an offer date. Why with some homes selling 100k or more above ask...it's gotta be great to be a seller with 13 offers on the table.

But wait...where did you stand in the realm of the offers submitted. Were you the victor? How much did you beat the second in line? Often this kind of thinking will make many buyers crazy. I've always told my buyers to somehow pretend that they're the only ones bidding on the house that night. It's a great house and we decide what fair market value for the property is based on the work we've put in. That way win or lose, most of the buyers feel like they put their best foot forward and didn't go in to lax or to bullishly.

With the practice of multiples all too common in this market, sellers are having a field day (again if they've priced well and show well).

But...these sellers will taste the other side when they become buyers, should they be buying in the similar market.

So...maybe it is fair and the shoe fits both feet so to speak?

The clear winners are those downsizing and putting money in the bank, but if youre young and moving up...you're at a good stage in life too!! Just not when you're buying a house in this market.....until you win.

Inventory should increase. The competition often helps level the playing field somewhat. Also with headlines in the media these days about household debt and rates to rise and new mortgage rules to hit soon, it's possible it'll be a kinder place for buyers. So keep learning the market and get a good agent. They do add value. Not sure they do. Visit my website @ http://www.TheSmithsBuyAHouse.com

best-

Michael Gruenstein MBA CSC
416.271.2066
mgruenstein@trebnet.com