Bay Area Multiple Offers, Competitive Housing Market,

So Long Multiple Offers, Hello MEGA BIDS

Think of multiple offers of the past few years as waiting in line at Disneyland, annoying, yes, but we know we’re going to wait to get on Pirates of The Caribbean. We deal with it, that’s just part of the ‘experience’ and eventually we get on the ride. In the past, the home buying process was annoying. We had to place a few bids on homes and compete with a few buyers, but annoying as it was, eventually we got a seller to accept the offer and we were off to enjoy the ride of home ownership.

We started 2020 as a relatively normal hot Bay Area market. Then we found ourselves needing not just a home, but a Life Hub where we do everything. Our Gym, School House, Church, Office, Theater and whatever else we had to go outside for. That all happens in our home now.

As we traveled through 2020 we experienced a shift from local buyers making small moves across town or some out of towners settling close to their office. 2020/2021 was the start of a massive shakeup. Those contemplating a ‘Big Move’ made a big move to Austin, Boise, Nashville, etc. After All, we can work from home now! We can live anywhere now!

In the Tri-Valley (Pleasanton, Dublin, Livermore, San Ramon) we are landlocked. Hills to the south of Pleasanton and the Ridge to the West of Pleasanton, Dublin and San Ramon. The North is a tight corridor through Danville on its way to… more hills. The East is blocked by the Altamont. Our little bowl is now overflowing.

Why Are We Seeing MEGA Bids?

We are blessed to have 580 running to San Francisco and 680/84 running to San Jose and the Silicon Valley. The Tri- Valley makes perfect sense for people looking to make a ‘Big Move’, except one problem, they are moving from San Francisco and Silicon Valley where a home is 3 to 5 times the cost of a home in the Tri-Valley. The Tri-Valley is to a Silicon Valley buyer as Pleasanton is to a Boise buyer. It’s cheap! Enter the MEGA BIDS. As we remain remote workers and families need more space, they leave the city, leave expensive square footage in Cupertino and find large homes on larger lots in the Tri-Valley. This drives prices to the sky.

In the past week I have placed offers for clients where the vast majority of bidders are out of the area and the bids reach far beyond recent comparables. $400,000 over on a $2,100,000 home. $150,000 over on an $875,000 home. My listing received similar interest where homes listed went $150,000 and $225,000 over list. These are not isolated to my experience only.

What’s the point of the article? Insight from the ground floor is what I hope to convey. As I write offers for clients and list homes I see first hand how our economy and way of life has changed.

MEGA BIDS are here to stay and we need to know why they are happening and for a game plan so we can compete in today’s competitive market. Let’s talk and we can discuss the market in greater detail.