It might be easy to assume that any home for sale will have immediate multiple offers for hundreds of thousands above asking price, but please don't believe everything you hear. Yes, we are in a great real estate market with exceptionally strong demand and very low inventory. Yes, many homes are seeing multiple offers and outrageous bidding wars, selling for hundreds of thousands above the listing price. But that in itself is not a reason to believe that every home, or even the majority of homes, will have such an experience. If every home for sale were to sell in a bidding war in less than 10 days, how would that explain the hundreds of homes for sale on the MLS, Redfin and Zillow, many of which have been on the market for four to six months, and many of whose prices have been reduced from the original listing price once or several times?

Bidding wars are not magic, although, occasionally, they happen unexpectedly. If you track the properties that sell with bidding wars, you will find some consistent data and patterns explaining the mystery. Here are some conclusions to the research:

1. Most multiple offers occur in areas with strong demand and very low inventory.

2. Most multiple offers occur among single-family homes in a neighborhood or large enclave of homes, not so much on high-traffic streets; isolated streets near a freeway or commercial building; or homes backed up to tall high-rise apartment buildings.

3. Multiple offers tend to be more common when the asking price is set at approximately 4% below the price of the most recent comparable sales.

Note No. 1: Those homes are listed at 4% below to initiate the bidding war.

Note No. 2: The owner has no obligation to sell at any price unless the owner voluntarily accepts an offer.

4. Bidding wars usually happen in the first two weeks. If a home has not attracted multiple offers within two weeks, chances are the home is either overpriced or lacks appeal to the general public of qualified buyers.

5. Multiple offers are most common for developer teardown properties; fixer-uppers; and very attractive remodeled or well-maintained homes with a functional floor plan, nice-sized rooms, a lovely master suite and an easily accessible, single-level backyard with privacy and room for a pool or later expansion.

6. Multiple offers are more common for single-family homes than condos and townhomes, but there are many multiple-offer scenarios for townhomes and condos in sought-after locations and select complexes.

7. Homes with great natural light, great floor plans and state-of-the-art upgrades attracting first-time buyers ages 25 to 40 seem to be prime for multiple offers when priced below $2 million, particularly when they are in a well-rated school district and in reasonably close proximity to school.

8. Homes near the beach, close to coffee houses, or near a trendy commercial district or popular street for entertainment are targets for multiple buyers quickly jumping in and over bidding.

9. Homes with a view, on a lovely cul-de-sac, near a quiet park or on an exceptional street are always in demand and, therefore, likely bidding war candidates.

Perhaps you look at this list and see your home fits one or two of the categories but not the rest. One can't say for sure what will happen, but this is where an experienced, knowledgeable Realtor such as myself can guide you. I would not suggest listing your home 4% below the market when conditions are not right, because if the anticipated bidding war fails to show up, it's not always easy to fix the price. You may need to take your home off the market for six months and then start over, which isn't always an option, nor is it usually convenient. Knowledge is power. Be sure to get all your information and ask plenty of questions before haphazardly setting a price and strategy and regretting it later.

In conclusion, again, let me say that not every home sells with multiple offers.

For more information, please call Ron Wynn at 310-963-9944, or email him at [email protected]. To find out more about Ron and read his past columns, please visit the Creators Syndicate webpage at www.creators.com.