Here in the Twin Cities they run a "Parade of Homes" each fall to showcase new homes and their builders. Recently I have noticed a new form of the Parade. A lof of the banks in our area are listings homes below market value and generating 10-20 offers within days of the home being on the market. So what happens is the home is listed for $59,000, even though the market might $80,000 on the home. Then you literally get tons of showings and multiple offers almost instantly.
As an example there were 2 homes in Anoka, MN that were listed. One listed for $90,000 and the other listed for $59,000. My client had an ionterest in both homes due to location. The first home we offered $105,000 after hearing there were multiple offers and seeing a line of cars waiting to see the home (The Parade). We lost out on that home by $15,000. On the second attempt, we were one of 16 offers and bid $85,000 plus closing costs and lost out by $1,000.
This trend is growing here in the Twin Cities and a lot of the bidders are all cash investors. Just curios if you are seeing this in you rmarkets.
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