You heard correctly. Multiple offers are back in the Tri-Valley. However, this version of the multiple offer scenario is more similar to the out-of-control child that you hope your son or daughter never befriends. Sellers should hold their enthusiasm about this multiple offer trend because many of these offers are low balls. Regardless of how well priced a seller’s home may be in this marketplace or the fact that some believe that prices have already seen their most significant drop in value, buyers are still psychologically under the spell that THEY MUST LOW BALL AND OBTAIN A BIG DISCOUNT ON THE HOME.

I have personally experienced this trend on a few of my listings in Dublin within the last month.  Also, many of my colleagues have reported similar circumstances.  For example, I recently received multiple offers on a listing that was very reflective of current market values.  These offers came in within 4 days of the home being on the market.  However, all of them were low balls. From a seller’s perspective, this is an insult and this aggressive strategy by buyers can backfire. Some sellers may not even want to deal with low-balling buyers in the future if they have to downwardly adjust their pricing in the future.  This is just plain and simply due to the “bad taste left in their mouths” from the initial experience.  Note to buyers:  Not all sellers have Bank Owned or Short Sale mentalities.  They are savvy people who understand the current market conditions, priced their homes to reflect these conditions and are looking for a fairly negotiated price on their home.

Some recent statements by the chief economist of NAR may steer buyers away from this low ball trend.  Despite a continuing decrease in housing prices, prospective home buyers may not want to wait much longer for the market to hit bottom, experts say.

There are a few reasons that point to why significant drops in housing prices are decreasing.  One central reason is that homeowners are becoming more realistic in listing their asking price. The latest Case-Shiller report shows that home prices in 20 cities dropped 18.6 percent in February from a year earlier. But, for the first time in 16 months, that rate of decline eased from the prior month.

In addition, it appears that the current price levels for homes for sale are drawing more buyers into the market. In fact, my open homes have been slammed the last few weeks. Three other potential contributing factors are the $8,000 tax break from the Obama Administration for qualifying buyers, historically lower interest rates, and the impact that loan modifications are having on stemming off more foreclosures and/or short sales from coming on the market.

Obviously, no one has a crystal ball to predict what holds for home prices and the real estate market. However, prospective buyers making low ball offers might find themselves in a bidding war, says NAR’s Yun. “I think some buyers are trying to steal property by offering low prices,” says Yun. “But even in those markets that plunge, buyers are coming back and making bids.”