How to be the winner when everyone wants to winLatest Issue, Real Estate Thursday, March 2nd, 2017
San Diego’s 2017 real estate market has kicked off with low inventory, and herds of buyers hoping to get in before interest rates go up even more. When entering a super-hot real estate market, like today’s market, you’ve got lots of competition. Only one buyer can claim the house everyone wants. There might be 2, 5, even 10 buyers who want the same house. How can you prevail?
There’s no infallible method, but like with most competitions, being prepared and knowing what you’re up against, will give you your best chance. Work with a knowledgeable and experienced realtor and demand that your agent educate you on your market of choice. How have prices jumped in the prior three to six months? What are the particular seller’s needs and terms? The more you know, the more savvy will be your offer.
If the property is a star, and the market is strong, realize you won’t get it at a bargain price. You will be putting yourself at a disadvantage to open low and expect to negotiate. You’ve put the seller in a bad mood and the next strong offer will blow yours away. If multiple offers are anticipated and warranted, and you want the house, you’ll probably have to come in at list price, or even slightly above. You might not have a chance to counter with a low opening bid.
Consider terms and contingencies; the seller will. The fewer the contingencies, the more favorably will the seller entertain your offer. Think about a larger down payment. Or more earnest money than average. If you have cash and can finance after closing or not at all, that is always persuasive. Have your broker investigate the seller’s timetable and specific needs; if you can accommodate the seller, your offer may be the most attractive in the pile.
Get into the seller’s consciousness for a moment. What would motivate you as a seller to select one offer out of ten submitted? You’d of course be most influenced by the price; that’s a given. You’d want the terms to be favorable, would be happiest with the fewest contingencies and the most cash. You would want the buyer to meet your schedule for closing and moving. You would want assurances that the buyer was capable and credit qualified. But what else?
If all the offers were the same and equal in all of the items above, you’d probably want your house to go to the nicest person, the most congenial and the one who would enjoy it as much as you had. So the buyer who expresses his love of the property and desire to own it in a personal note, might just earn that extra favor that would make him move to the forefront. Don’t forget to add a family photo to the personal note.
Our advice to you the buyer to get the house of your dreams, the one everyone else wants too, is to follow these simple steps. Get a good realtor. Do your homework and know the market. Get pre-qualified. Make a strong offer to start with. Make your terms as flexible and seller- friendly as you feel comfortable with. Show your personality, respect and intention with a personal note. Be prepared to counter even stronger.
If, in the end, you lose to another buyer, do not despair. Another great house will come up and you will now be an experienced multiple bid offerer. Good luck the next time around.
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