Tight Inventories Prompt Overbidding
September 14, 2017
A home in Sunnyvale, Calif., recently sold for a whopping $782,000 above its list price. The four-bed, two-bath home that is less than 2,000 square feet was listed for nearly $1.69 million. But the home attracted more than 20 bids and ended up selling for $2.47 million.
Read more: A Sign That More Housing Inventory Is Coming
“I think it’s the most anything has ever gone for over asking in Sunnyvale—a record for Sunnyvale,” Dave Clark, the Keller Williams real estate professional who represented the seller in the transaction, told The Mercury News. “We anticipated it would go for $2 million, or over $2 million. But we had no idea it would ever go for what it went for.”
The property is one of more than 50 South Bay homes that have sold in the last month for at least $200,000 above the listing price.
Overbidding is occurring more frequently in markets where inventories are tight.
Some real estate professionals are hoping to spark a bidding war by purposely listing homes under the market value. The lower list price prompts fierce competition among buyers.
The buyers of the Sunnyvale home had grown tired of being outbid during their house hunt, so they decided to up the ante even more. “They lost two before they bid on this one, so we kind of knew what the numbers would be,” Mini Kalkat, the Intero agent who represented the buyers, told The Mercury News. “It’s a crazy market, but there’s a way to maneuver the market.”
Source: “Now This is Ridiculous: $782,000 Over Asking for a House in Sunnyvale,” The Mercury News (Sept. 12, 2017)
Updated: February 21, 2020