Since February of this year, I’ve been involved in 11 scenarios where my buyers were up against multiple offers. I have been finding this to be happening the most at the price point of $300,000 – $465,000 in the Southwest Minneapolis and the Minneapolis Lakes Area, with single family homes. One set of buyers was in 3 separate multiple offer situations on 3 separate homes in Southwest Minneapolis, when we put their offer in on homes in the mid $400′s price range. They did get the 4th home they put an offer on, and that one also received multiple offers. Amazing.
I was not surprised, as the homes were great, close to Lake Harriet, and all were priced within the range they should have been. All of these homes sold for full list, or over full list price.

I’ve been hearing this same buzz from other agents around the 50th & France office, and some of my friends that are agents with other brokerages. I’ve also been involved in multiple offer scenarios this year in West Bloomington and Nokomis, in the mid and upper $300′s price range.

The difficulty is: I can usually tell when a home is new on the market, priced right and thus stands a very good chance of selling quickly. However, the difficulty is that when buyers have been hearing for 3 years straight that it is their show (and in some cases it still is), they often have a hard time believing that some homes sell immediately, and often for full or over full list price…until they lose the first home they really like…and the second…and so on.

Of course, not all homes are selling this quickly, as there are many homes on the market, but many are in mediocre condition, but still having premium pricing. But when a good home comes on at the right price, you can feel it right away…and so can the other 127 buyers who have just seen it online.

The home usually goes to those who move the fastest and give a good solid price.

The lesson for buyers: If you see a great home on the market, at a good or fair price, in a good neighborhood, don’t try to ‘steal it’…as you’ll probably end up losing it. Then you’ll spend the next 2-3 months trying to find that home again, always saying ‘I should have…’

The lesson for sellers: pricing is the key. Really.

The 2010 spring housing market is officially off to the races. Many buyers held off on buying last fall, due to the tax credit extension. Now they are rearing to go. How do I know this? – from my own buyers, and also hearing many other Realtors commenting on this same thing from their buyers, which leads to point #2: Many sellers are now going on the market earlier than they normally would.

The housing market in the Minneapolis metro area is somewhat cyclical, with the majority of listings going on the market in the spring, and a small bump again in the latter summer/early fall. Typically our market starts to heat up right after the Super Bowl (cabin fever?). Many of the listings go on the market in March, April and May.

This year, many agents are suggesting to their clients to go on the market in January, and February. There are many buyers out there, locked and loaded…pre-approved. Also, due to the tax credit expiration (must write your offer by April 30th, and close by June 30th), this has put the heat on the market.

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