Bidding wars over homes for sale are spreading like crazy across the U.S., but for savvy real estate investing pros this is good news.
Why you ask? Consider the following:
- 75% of Redfin agents reported multiple offer situations in March
- 9 out of 10 home listings in major California cities received multiple offers last month
- Two thirds of homes in a number of the nation’s leading metros now receive multiple offers
In many areas of the country, the question is no longer whether there will be a bidding war or multiple offers, but a matter of how many will come in. Forget 8, 10, a couple dozen or even 100 offers; One brokerage in Mass. stopped accepting offers after a bidding war of 250 offers took place, with the property ultimately selling for $400k over the asking price.
As mentioned above, these bidding wars are great new for real estate investors selling properties, as they translates into larger and quicker profits. And as for those with a good real estate education who are wired into the data, there are also plenty of acquisition opportunities.
Anything being advertised publicly might be flying off the shelf as fast as ammo and assault weapons today, but with mountains of foreclosures, mortgage delinquencies and shadow inventory stacking up at double and triple rates in some regions over the last year, there are plenty of discounted homes to cherry pick from.
In the hottest markets even the laziest of real estate investing pros are once again able to realize tens of thousands of dollars in instant equity and turn around homes in just days. While those with a little more creativity will find a treasure trove of homes with fat spreads among distressed properties just waiting to be picked up and marketed correctly.
What’s the most offers you’ve got on your properties? Can you beat 250? Share with us your personal record and what you think helped you to be so successful.