Are Multiple Offers The Norm?
Multiple offers are once again becoming common place in Reno real estate at least in the $200K and below property price points. These price points are generally for REO or Bank Owned properties. Everyone in that price range is looking for a deal. It is not uncommon to see a property come to market for $150K and be on the market for less than 5 days only to find out that there are already 3 to 8 offers for purchase of this property. This is not unlike the 'feeding frenzy' that we saw in the Reno real estate market in 2005 and 2006. A friend of mine in the bay area indicated that they are receiving up to 40 offers for any property that is priced below $400K.
If you are looking for REO or bank owned property in the $200K and below range, don't be surprised if your agent recommends a minimum offer of the listing price and expect to receive a best and final request from the seller. Short sale properties do not seem to be seeing as much multiple offer action as the REO or bank owned properties. I recently saw a bank owned (REO) property come to market with an asking price of $134,900. My clients 1st offer was $140K and their best and final offer was $165,000 and they did not get the property. A purchase price greater than $165K was accepted by the bank.
There are great values in the Reno market however keep in mind that many people recognize these values and you may find yourself in a multiple offer situation. For now at least, Multiple Offers are the new norm in Reno real estate for properties priced below $200K.