Grand Rapids, MI: The Days of Low-Ball Offers for Real Estate Are Over; Bidding Wars Are Back

Grand Rapids, MI -- The 22% increase in home sales last month was not the only good news being reported by the Grand Rapids Association of Realtors. The average home sale price, which has been tumbling down for 16 months, finally went up. The increase of 0.1% from August 2008 was slight, but it is a far cry from the double-digit drops recorded during the past 12 months

Real estate agents who have been engaging in bidding wars are not surprised. "All my offers have been multiple offers," said Bill Pearl, an agent with Bellabay Realty. "I've gotten outbid with three other buyers."

The struggle now is getting his buyers to understand the market is changing and low-ball offers won't be accepted, he said. "I'm having a hard time convincing them that those days are over," he said.