This year has been an unpleasant roller coaster ride for many first time home buyers. Having several buyers (at the same time) wanting the same exact thing puts a Realtor in a very precarious position.
Telling the truth is a great start. Many first time home buyers have a price range of 450K to 500K. Right now it's almost unheard of to offer less than asking in that price range, especially at 450K for a single family home in San Mateo. In late March working with home buyers, wanting a condo in that price range with at least 2 bedrooms and 2 baths seemed rather simple, right? Nope, that's when the madness of multiple offers began.
We started with writing an offer on a Plaza West condo in San Mateo. the last few sales at that time were in the high 300k's. The asking price was well over 400K. We were shocked to learn that after presenting an offer, there were 8 other offers!
After MONTHS of searching we were able to find a condo in Foster City that was hopelessly under priced. We offered over asking But, market value, and amongst 19 offers, my clients got it. Whew, it only took six months, and offers on 12 different homes.
Finding a single family home for under 450K is also very difficult.Just a few short months ago a home on Cypress in N Shoreview had a list price of 450K and sold with multiple offers for 475K. At the same time a home on Lodi in San Mateo was listed for 420K and sold for 465K.
There are many other examples. Why is this happening?
1) Low Interest Rates
2) High Cost of Rentals
3) 55% Less Homes for Sale on the Peninsula in 2012 than in 2011.
First time home buyers should not get discouraged, because I do believe that 2013 will change and there will be many more choices for homes for sale than there was this year.