The REAL on all things real estate related in the Greenbrier Chesapeake area!

Jan. 25, 2021

Are Some Buyers Going ‘Too Far’ to Win a Bidding War?

Facing an upsurge in housing demand across the country, many home buyers are finding themselves in bidding wars for the limited inventory on the market. To win, buyers are trying to find ways to entice sellers beyond price—and at times are taking it too far, real estate professionals say.

Mary Lou Wertz of Maison Real Estate in Charleston, S.C., talked to The Wall Street Journal about one couple relocating from New York who fell in love with a $1.2 million, four-bedroom home online. The seller had already accepted another offer, however. The New York couple offered to pay $10,000 more than the other buyers as well as offer their competitors $25,000 to walk away from the home. They also told the seller that they would make a $30,000 donation toward a hospital for cancer research since the seller had recently lost his wife to cancer.

 

Ultimately, the New York couple’s offer was not accepted. The offer seemed “a little over the top” to the seller, Wertz told the Journal.

 

Another couple shared with the Journal how they toured 50 Los Angeles homes, submitted 16 offers—sometimes above the asking price—and were outbid every single time. But they weren’t about to lose out on a three-bedroom home listed for $735,000 in the Northridge area. “We were turning up at showings, and there would be a line of people who were there before us,” Andrea Kissling of Los Angeles told the Journal. “These houses were getting 30 or 40 offers and going $100,000 over asking.”

 

The buyers noticed memorabilia around the house of the Harry Potter films. So they produced a Harry Potter-themed video for the sellers (one of the buyers provides design services for Warner Bros.). The video fawned over the home and showed the couple reading Harry Potter books to their children. The couple also offered to buy the sellers VIP passes to The Wizarding World of Harry Potter at Universal Studios Hollywood.

 

Despite all the work, the couple still lost out to a higher offer for the home.

 

Chris Furstenberg of Nourmand & Associates in Los Angeles told the Journal that one of his clients—a filmmaker—once made an offer that came with the promise of tickets to the Academy Awards. Still, the seller went for a higher offer.

 

Furstenberg says such enticements often only work to settle a tie in a bidding war. But if there’s a higher price, that usually always wins out in the end—no matter how much buyers try to sweeten the deal with other offerings.

 

 

References

National Association of Realtors. (2021, January 21). Are some buyers going ‘Too far’ to win a bidding war? Realtor Magazine. https://magazine.realtor/daily-news/2021/01/21/are-some-buyers-going-too-far-to-win-a-bidding-war

Posted in Housing Market
May 19, 2020

How has Covid-19 effected the Housing Market.

As an Agent, I didn't know how the market would do with this "Global Pandemic" that we are facing. Honestly, right now things don't seem to be looking too bad, recent research done by Lending Tree has shown that property searches had rebounded by 54% by the end of April. So what exactly does this mean? Well, most people are thinking that there will be some "Great Deals" coupled with attractively low-interest mortgage rates. So why not take a little gander into the housing market? See what is out there, and how things are priced. 

The median sales price has increased from 94% in the first quarter of 2019 to 96% in the first quarter of 2020. Home prices for the first quarter of 2020 are at $274,600 which is an increase of 7.7% since this time last year.  This may not seem huge, but with the ongoing Covid-19 happening, any growth is good. Seeing as no one really knows when relief will come, or where their jobs will be when it is over. 

Phase 1 of reopenings happened this past Friday, and it was great seeing people out and about stimulating the local economy. Although restaurants are only able to do outdoor seating, with social distancing, of course, people still flocked to get out of the house. Menus are online, the wait staff wore masks and gloves, but no one seemed to mind. With live music and beautiful weather, what did it matter?

Hopefully, this is a sign that things may return to "Normal" here soon, where we will be able to do more in-person showings, more client sit-downs, and proceed as we always have in the past. 

 

See the source image

 

 

 

**This blog contains short cuts to some articles where I gathered some of my information, along with a photo courtesy of Google Images.**

Posted in Housing Market
April 24, 2020

HGTV House Hunters- Humble Beginnings.

Hello everyone, and welcome back to those that have been here before! 

 

I was recently featured on HGTV's series, House Hunters. This episode took place in Suffolk, VA, which was voted "One of America's 100 Best Small Cities to Live" back in 2010. Suffolk is home to The Planters Nut and Chocolate Company, dubbing it the "Peanut Capital of the World". Also offering the Legends of Main Street ghost walk, and providing access to The Great Dismal Swamp. The Great Dismal Swamp isn't as gloomy as you would expect it to be, given its name!  It offers over 100,000 acres of outdoor recreation, from canoeing on Lake Drummond, to hiking any of the Ditch trails; there is plenty of wildlife to be spotted! From turtles and bobcats, to bears, oh my! 

Alright, enough about the beauty of Suffolk, and onto the show.

 

Working with this couple was an absolute pleasure, and I was glad to be able to find them a home that was the best of both worlds. Although both Marcelo and Amanda come from a modest background, their wants and needs were different. Marcelo was looking for something remote, a little smaller, and something that he could invest some "Sweat equity" into. While Amanda was looking for something in a neighborhood, with a pool, and a bit more room for their expanding family. During this episode, I showed them 3 houses; one "Ranch" style, one "Colonial" style, and one "Traditional" style home. 

The ranch home was a little bit smaller; had been recently updated, was off the beaten path, and well under their price point. The colonial-style home was built in 1929, was over 3,200 sqft, and offered an inground pool. The traditional style home, offered quite a bit of sweat equity, a large back yard, and the ideal master closet. 

 

Which home did they choose? Check out the "Humble Beginnings in Virginia" episode of House Hunters here

 

Would you want to be featured on an episode of House Hunters with me? If so, please reach out! :)

Posted in House Hunters
Feb. 18, 2020

The Specialty Club - Owner Interview

 

 

I had the pleasure of sitting down with Mauricio Mova to get an in-depth look at what it is he does within The Specialty Club and how he got where he is today! 

Check out their website: The Specialty Club

Do you have a local business you would like me to interview? Comment down below and let me know which business I should spotlight next! 

 

Want to see more videos like this one? Subscribe to our YouTube channel: Peak Realty Inc on Youtube

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