Just when you think the sellers market is going away.

Akron, OH · Member since 2024 · 101 posts · 78 votes

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.

Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

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V.G JasonPro Member

Investor · Member since 2022 · 3k+ posts · 3k+ votes

Quote from @Richard Schubert:

Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

For houses at that price level, you'll always have lots of bidders. The risk to the floor($0) is worth it, at scale, for some.

Go check out other markets that are actually closer to the median price point, it's a lot less transactional. Infact 29 offers may be more than they get for an entire zip code.

The example you used is just too small and futile.

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Account Closed
Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
2y
Hi, congratulations on your investment in Ohio. Yes, you are correct the market is doing well in Ohio. People from all over is investing in real estate in Ohio and all of my client's would definitely agree. Please feel free to reach out if you have any questions. Best Wishes!
1 Reply
Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
2y
@Richard Schubert I'm sorry that you didn't win the bid but this doesn't not indicate a seller's market. It says that in any market you can underprice a house and get attention. A seller's market speaks to the overall rate at which houses are selling / being listed. Its a delicate balance of supply and demand in a market.
If this house was listed at market price and 10 others in that area had the same experience then yes we would call that a sellers market. But would this have sold that quickly with that much attention if it was listed at 95k?
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Samuel DioufBusiness Member
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Sorry you didn't get that deal, but it's great you're making offers!
The Ohio market is competitive, but it's just a numbers game. Keep sending offers out and you'll lock one up!
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Ryan Arth
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
2y
@Richard Schubert As was previously stated, given your description of the area and the property, it looks like a property that was significantly underpriced to generate a bidding war (and get contingencies removed in the process).
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
Quote from @Richard Schubert:

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.
Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.
For houses at that price level, you'll always have lots of bidders. The risk to the floor($0) is worth it, at scale, for some.

Go check out other markets that are actually closer to the median price point, it's a lot less transactional. Infact 29 offers may be more than they get for an entire zip code.

The example you used is just too small and futile.
2 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
2y
Quote from @Richard Schubert:

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.
Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

Hi Richard, sorry to hear your offer didn't get accepted. Based on your description of the property, it seems such a steal at that price. They were easily aiming to get contingencies removed and start a bidding war so I don't think $70k was going to be competitive. You can always check for comps within 0.5 miles and see how much the properties in the area are going for to guide you in your offer price. Happy to connect and answer any questions you may have.
[email protected]614-300-7535
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Peter W.
Member since 2020 · 351 posts · 329 votes
2y
Much of the great lakes region has almost no new builds over the past 15-20 years (in part due to stagnant or declining populations. Now that they are growing again, affordable supply (in terms of single family homes) can no longer be added due to labor and material costs. The real estate market in the Great Lakes is very different than the rest of the country especially for affordable housing. Check out Tallahassee, Phoenix, Austin, south Florida, or Knoxville, it’s a very different story.
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Richard Schubert
OP
Akron, OH · Member since 2024 · 101 posts · 78 votes
2y
Thank you for all the comments everyone. Yes, I knew this was priced below market to make an offer war. The comps on this one was around 90k but tended to be towards the nicer end of the area. And those homes had much more recent updates. Given the block this was on which was primarily mix of decent homes and obvious rentals, and this home needed a few thousand in repairs prior to rent, I did not want to pay more than my max 76k offer. Fair market rent in this neighborhood was 1100.00 on the high side and more realistic was 950 to 1k. I set a number in my mind that worked with my calculations and did not get it. But then again if I offered more than I wanted and did win, I would not have been happy with my numbers. Will keep looking!
1 Reply
Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
2y
Quote from @Richard Schubert:

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.
Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

Akron should not be as tough unless the deal is that good. I would always make sure that you are telling your agent to call the listing agent right away and find out what is the best offer they are willing to take. I have won several outbids this way.
[email protected]614-802-5698
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Ryan Arth
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
2y
Quote from @Richard Schubert:

Thank you for all the comments everyone. Yes, I knew this was priced below market to make an offer war. The comps on this one was around 90k but tended to be towards the nicer end of the area. And those homes had much more recent updates. Given the block this was on which was primarily mix of decent homes and obvious rentals, and this home needed a few thousand in repairs prior to rent, I did not want to pay more than my max 76k offer. Fair market rent in this neighborhood was 1100.00 on the high side and more realistic was 950 to 1k. I set a number in my mind that worked with my calculations and did not get it. But then again if I offered more than I wanted and did win, I would not have been happy with my numbers. Will keep looking!

Exactly, if someone else has a different motivation, lower return threshold, or is a fool, let them have it.
When I used to go to auctions it was pretty clear when a couple was bidding to buy for their personal residence, and you didn't bother to bid against them.
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Jeremy HoldenBusiness Member
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 155 posts · 90 votes
2y
Im an investor and agent in the Phoenix market. It very much depends on your local market. Down in parts of Texas and Florida there are massive spikes in inventory while in other areas like the northeast and part of the midwest, the markets are on fire. Interest rates will play a huge factor.
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Hanh Hoang
Realtor · Los Angeles CA · Member since 2011 · 6 posts · 7 votes
2y
I am here in southern California and homes are still selling in less than 2 weeks.
The agents that price the homes correctly will get multiple offers and sell in less than 2 weeks.

The agents that price the home extremely low for marketing purposes will get 20 offers on a home.

I tend to price the home slightly higher than the market and see if any buyers will bite, if not we typically adjust the price down over a course of 30-60-90 days down to the price where we start to get showings and offers.
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Richard Schubert
OP
Akron, OH · Member since 2024 · 101 posts · 78 votes
2y
Quote from @Alfath Ahmed:

Quote from @Richard Schubert:

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.
Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

Akron should not be as tough unless the deal is that good. I would always make sure that you are telling your agent to call the listing agent right away and find out what is the best offer they are willing to take. I have won several outbids this way.
That’s a good idea, and we tried that. The selling agent would not give us that information. I did learn that the owner accepted an offer of an owner occupant and had said they rather have the house go to someone who wants to live there. Funny is this is the second time I have encountered that in the last 30 days. Another deal I had an offer only 2k under asking, cash, no inspections or appraisal and lost out to a asking price financed with inspections/ appraisal owner occupied.
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Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
2y
Quote from @Richard Schubert:

Quote from @Alfath Ahmed:

Quote from @Richard Schubert:

Made an offer on a really nice 3/1.5 house in a c+/b- neighborhood in Akron, Ohio. House was priced way under the market at only. 60k asking price. Super nice house with nice landscaping , hardwood floors in great condition, nearly move in ready with new furnace/hotwater/ central air. Came in strong with a 70k cash offer with an escalation clause for up to 76k all within 12 hrs of listing. 2 days later I learn my offer lost out and that they had 29 offers.
Wow, I thought. Who says the seller market is going away?? Back to searching. The competition is really tough right now.

Akron should not be as tough unless the deal is that good. I would always make sure that you are telling your agent to call the listing agent right away and find out what is the best offer they are willing to take. I have won several outbids this way.
That’s a good idea, and we tried that. The selling agent would not give us that information. I did learn that the owner accepted an offer of an owner occupant and had said they rather have the house go to someone who wants to live there. Funny is this is the second time I have encountered that in the last 30 days. Another deal I had an offer only 2k under asking, cash, no inspections or appraisal and lost out to a asking price financed with inspections/ appraisal owner occupied.
My son bid on a house at the end of June up in Lakewood- 15 offers. a cash offer 60k over asking price was accepted. I also had tenants buy a house in Copley in June-- they won with 33k over asking and 8 other offers. It still seems pretty brutal around here in single fam world.
2 Reply
Carlos Scarpero
Lender · Dayton, OH · Member since 2018 · 117 posts · 19 votes
2y
Northern Ohio still seems competitive especially at lower price points. I just had a buyer in Toledo lose one. She bid over asking by quite a bit. The winning buyer offered appraisal gap coverage.
1 Reply
Cyril Beycome
Member since 2024 · 2 posts · 0 votes
2y
Wow
0 Reply
Bob Foglia
Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
2y
Quote from @Jeremy Holden:

Im an investor and agent in the Phoenix market.

What’s going on in in the PHX market?
1 Reply
Jeremy HoldenBusiness Member
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 155 posts · 90 votes
2y
@Bob Foglia shot you a DM
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