Akiko Matsuda

amatsuda@lohud.com

Amy and Jason Gnagy made an offer to buy a Mediterranean-style, fully-renovated home on a quiet block in New Rochelle after they fell in love with the house's gracious look and decided it would be perfect for their family of four.

There was just one problem.

Three other families also wanted the same house, and the Gnagys lost out in a bidding war this spring. Feeling disappointed, the Gnagys, parents of 10-year-old Eva and 8-year-old Jack, tried reluctantly to move on.

"I really liked this house and kept looking at it. And every time I showed my mom another one, she’s like, 'It would be great if you can have that other house,'" Amy Gnagy recalled. "I had to tell her we didn't get that."

They were learning the hard way what many home shoppers are finding out: Buying a reasonably-priced, move-in-ready home in certain areas of Westchester has becoming extremely competitive, as young families from New York City and beyond flock to areas with thin inventory.

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Homes priced between $500,000 to $1.5 million in the areas with good schools and an easy commute to New York City are — as always — the most sought after. The trend is fueled by internet-savvy buyers who constantly monitor online real estate listings to spot their ideal homes as soon as they come on the market.

"This started about two years ago," said real estate salesperson Susan Reische with Douglas Elliman Real Estate, who represented the Gnagys.

Reische said prior to this current hot market, sellers were excited if somebody just walked through the door to view the house.

"Now, people put the house on the market, say on Thursday, and the open house is on Sunday, and then they’ve got accepted an offer Monday or Tuesday. ... The general feeling is 'Gosh, there’s a seller’s market out there!'”

In an attempt to beat out any competition, some buyers place offers without ever looking at a house in person, said Satoshi Maezono, licensed associate real estate broker with Douglas Elliman.

In one occasion, a house hunter placed an offer only six hours after Maezono posted a new online listing for a Rye Brook home, he said.

"I asked if they have seen the house, and they said, 'No, but I know the location, and I want to place an offer,'" he recalled. "They just went for it."

Cash buyers rule

Industry experts say bidding wars are common in southern Westchester communities including Pelham, New Rochelle, Larchmont, Scarsdale, Rye, Bronxville, Tuckahoe, Eastchester and the so-called Rivertowns of Hastings-on-Hudson, Dobbs Ferry, Irvington and Ardsley.

"Right now, overall, almost all properties in southern Westchester that are well-priced are going into bidding wars," said Alison Bernstein, founder of The Suburban Jungle Realty Group, a real estate firm focused on buyers leaving New York City to move to the suburbs. "And buyers are spending all cash, or high percentage in cash."

About two months ago, when a mid-century home in Pelham was put on the market, 42 people showed up at a Sunday open house, said Owen Berkowitz, a Douglas Elliman real estate professional. By the following Wednesday, eight bids were submitted. The winning bid was nearly $100,000 above the asking price of $789,000, he said.

For a four-bedroom house on Brookdale Avenue in New Rochelle, about 30 people attended an open house and seven bids were submitted. A winner was a New York City couple who offered more than $40,000 above the asking price of $849,000.

And in the Rivertowns, a 2,100-square-foot home on Judson Avenue in Dobbs Ferry was sold for $875,000 — $50,000 above the asking price — as a result of a five-bidder battle, Berkowitz said.

"People come to the Rivertowns because of their atmosphere and good schools," said Maezono, a 10-year industry veteran, noting that many of the Rivertown buyers are from Brooklyn and attracted to the area's artsy feel.

And those buyers have the means to win out in a bidding war, said Maezono.

"Many people who had homes in New York City, their home value went up so much, so they cash out, and they're coming to Westchester," he said. "It's hard to beat those people."

Buyers priced out of New York City started swarming into Westchester in the third quarter last year, said Jonathan Miller, CEO and president of Miller Samuel Real Estate Appraisers & Consultants and the author of the Elliman real estate market report.

"What they are buying is entry-level and mid-market property and tend to (want to) be somewhat closer into the city," Miller said. "What you are seeing is the high-end buyers or renters in the city are staying in the city. The entry and mid-market renters and buyers from the city are moving to the suburbs."

The number of single-family-home sales in Westchester was 1,472 in the 2016 second quarter, up by 20.1 percent compared to a year ago. The inventory fell sharply by 10.7 percent in the same period, indicating that the market is moving rapidly, Miller said.

Despite the surge in sales, the median sales price slipped 1.5 percent to $640,750 over the same period. But price growth is expected to follow in a year or so in the areas where sales are surging, he said.

Second time a charm

Amy Gnagy couldn't let go of the Mediterranean house, so a week and a half later, she contacted her agent, asking whether the sale went through.

"She said, 'You know what? The house is going back on the market because the other bidder’s financing fell through. Would you like to rebid?'" Amy Gnagy recalled.

The Gnagys went into the second round of bidding against two other buyers, and this time, they won, even though their offer, $1.202 million — $53,000 above the asking price — was not the highest.

Jason Gnagy said the couple's strong financing made them the most attractive to the seller, who wanted to close the deal this time.

SEARCH: Find house sales dating back to 1993 at lohud.nydatabases.com

The Gnagys, who were moving from Fishers, Indiana, closed the sale July 19 and moved in two weeks ago.

"I love how it's unique. I love how every house on the street looks different. I love the big windows. I love the colors. I love the kitchen and the bathrooms," Amy Gnagy said of their four-bedroom house.

"I like the historic aspect," Jason Gnagy said of their house built in the 1920s. "I spend a lot of time thinking about who lived here before, what those rooms were used for."

Avoiding bidding wars

House hunters who are having tough time in more competitive areas should explore northern Westchester, recommended Ahmed Shafei, who found his dream home a little more than a year ago.

Shafei, along with his wife, Anna Ganzman-Shafei, looked for houses in the Rivertowns and southern Westchester for more than two months before changing gears.

"We kept looking. (We found) nothing we really liked. When there's something we really liked, they were crazy expensive," Shafei recalled. "They were over our budget, and taxes were high."

The couple's agent, Maezono, advised them to consider Croton-on-Hudson, which was outside of the couple's target area but met their other priorities.

"We didn't even know anything about Croton, to be honest," said Shafei, a former resident of Jackson Heights in Queens. "We didn’t know anything about north of Briarcliff."

In March 2015, the couple bought a three-bedroom house on Observatory Drive in Croton for $510,000.

"We love it," Shafei said of the family's new home, which has a backyard where the couple's two young children can play.

Shafei says one of Croton's advantages is having a Metro-North express train: His commute to Manhattan is one hour door to door.

"Move up!" Shafei said to house hunters who can't find homes in southern Westchester. "You get more for your money, and nature is amazing."

Twitter: @LohudAkiko

Regional median sales prices for the second quarter of 2016

Northeast (Bedford, Byram Hills, Chappaqua, Katonah-Lewisboro, North Salem, Pleasantville, Somers): $775,000

Northwest (Croton-Harmon, Hendrick-Hudson, Lakeland, Peekskill, Yorktown): $375,000

Rivertowns (Ardsley, Briarcliff Manor, Dobbs Ferry, Elmsford, Hastings, Irvington, Mt. Pleasant, Ossining, Pocantico Hills, Tarrytown): $599,000

White Plains & Vicinity (Greenburgh, Valhalla, White Plains, Hawthorne): $1,080,000

Sound Shore (Blind Brook, Harrison, Mamaroneck, Port Chester, Rye City, Rye Neck): $567,000

Lower (Eastchester, Edgemont, Scarsdale, Tuckahoe): $1,265,000

South (Mt. Vernon, New Rochelle, Pelham, Yonkers): $530,000

Source: The Elliman Report (Names of the school districts in each region are listed in the parentheses.)

5 tips to win bidding wars

Understand what you can afford and prioritize your needs.

Get mortgage pre-approval for the amount of the house you'd like to purchase.

Be prepared to show your proof of funding, particularly when the size of downpayment is significant.

Try to minimize your contingencies, such as a sale of your current house.

Act fast to show the seller that you are serious.

Source: Susan Reische/Douglas Elliman Real Estate