Imagine finding the home of your dreams and making an offer on it…only to find that two or three other prospective buyers have also made an offer on the same property. Today, many sellers are receiving a nice surprise: multiple offers, often resulting in a contract sales price that exceeds the listing price.
“We just finished the strongest first quarter for closed home sales in five years and the second quarter is delivering even greater results,” says Prudential Network Realty Founder, President and CEO Linda H. Sherrer. “I believe we have entered a period of equilibrium; some sellers are finding that they are in the driver’s seat when it comes to negotiating price and terms.”
Why are these multiple offer situations happening? Take a look at the latest figures from April 2012 released by Northeast Florida Multiple Listing Service. Compared to a year ago, pending sales are up 36 percent, the supply of homes shrank 29 percent and the number of homes for sale hit a 6 month supply, dropping 37 percent. A balanced market has between five and six months of inventory, according to Prudential Network Realty. With fewer homes to choose from, multiple offers on homes for sale are becoming more common, particularly with homes priced at market value, in a good location and condition.
Consider what is happening at Prudential Network Realty, a member of RISMedia’s Real Estate Information Network® (RREIN). The company’s real estate professionals working with both buyers and sellers are seeing a significant increase in multiple offers in every price category.
Here is a case in point: REALTOR® Joyce Haley of the company’s St. Augustine office recently sold a home at 100 Woodlake Court in St. Augustine. The home was listed for sale a year ago with another real estate company but did not sell. Fast forward a year. The homeowner met Haley and decided to list the home for sale in the $250,000 price range. Within a day of listing, the seller received three offers on the property. She accepted a cash sale offer that was $6,000 more than the asking price and closed on the home within two weeks.
REALTOR® Marcia Simmons and Melissa Lewis of Prudential Network Realty’s Avondale and San Marco offices had a similar experience on a luxurious estate home in Avondale. After it was listed, the home on McGrits Boulevard received a lot of traffic and multiple offers. The home, a short sale, recently sold for $1.9 million.
According to the company, many buyers and sellers turn to Prudential Network Realty because the company offers single agency representation, the highest degree of accountability. Its real estate professionals have a single goal—to serve the best interest of their clients by negotiating the best price and terms possible.
“Our agents are focused on creating a win for the buyers and sellers we represent,” says Christy Budnick, executive vice president of residential real estate, Prudential Network Realty. “For sellers that have waited for the right time to list their home, this is it. Smaller inventories coupled with low interest rates, will increase home prices, continuing to move the market from buyer-controlled to a balanced market.”
For more information, visit www.PrudentialNetworkRealty.com.