Spring is when you start to see more “For Sale” signs popping up across town and, right now, there's mixed news if you are thinking about jumping in on the action.
The current real estate market is catching some people off-guard. Buyers across Cleveland are now having a more difficult time closing the deal on their dream homes. However, for those looking to sell, it is a much better story.
The Village of Timberlake, 9 East Shore to be exact, is the home Gary Strauss found for his son Dan and his new wife Alli.
“It has been a labor of love. We look forward to having them come back," said Strauss.
The couple, currently living in California, put in an offer on the lakefront home.
"We knew going in that multiple people were going to be bidding on this and we tried to get creative,” said Strauss.
Listed at $199,000, Strauss and his son put in an offer of $205,000.
This is where that creativity Strauss talked about came in. His agent used a new maneuver to try and rise above the other buyers.
"You put in an offer, but you can say you are willing to go up so high over and above whatever the highest price is," said real estate agent Monique LaFortune.
LaFortune is encouraging more of her clients to use the Escalation Clause since she's seeing more homes generating multiple offers.
“We haven't seen those for quite a few years," said LaFortune.
As for why? LaFortune says there are fewer good houses on the market.
"Nondescript houses and we barely get a chance, we want to write an offer and the house is gone," said LaFortune.
Add to that interest rates are still relatively low.
"You get that combination and you've got people fighting for houses," said LaFortune.
As for where we're seeing these hot housing markets? LaFortune said there are pockets everywhere — including Rocky River, where one home on Lakeview Avenue sold in a month for $5,000 above asking price (picture below).
In the city, a century home on Starkweather in Tremont also sold in a month for $39,000 above asking (picture below).
“It's extremely frustrating if you are the buyer's agent," said LaFortune.
Back to Gary Strauss. His son was willing to go up well beyond $237,000 to buy his dream lakefront home.
"We were actually over the winning bid by several thousand dollars," said Strauss.
As it turns out, despite having the Escalation Clause, that lower offer was not contingent on securing a mortgage.
“The cash offer won out in the end. My son and his wife are getting closer to being here so they can take on my role now," said Strauss.
As for what neighborhoods we are seeing these hot houses generating multiple offers, LaFortune tells News 5 it is happening in pockets all over Northeast Ohio.
The fastest and slowest appreciating zip codes in the Cleveland area, according to Zillow.com:
- Cleveland (44108)
- Cleveland (44106)
- Lakewood (44107)
- Euclid (44132)
- Bedford (44146)
- Cleveland (44110)
- Cleveland (44102)
- Cleveland (44127)
- Berea (44017)
- Euclid (44123)
More data from Zillow.com