It’s amazing how the real estate market in the bay area has turned on a dime and currently is a sellers market. Since February of this year our real estate market has gone wild! Homes are selling within day and with 10+ offers and selling over asking price. What caused this? Well, with rates being at all time
lows of the past 50 years many buyers sitting on the fence have decided to jump in and make the move to home ownership. Aonther reason is our inventory has diminishe to about 50% of where we were a year ago. Another factor is our local employment is stronger than most of the country giving confidence to consumers in the S.F. bay area. We may have the hottest real estate market in the country right now.
But where there is good news for sellers, best in the past four years, there is not so good news for buyers. Why so? Here is why; with most homes, including short sales and Reo’s, there are multiple offers due to the lack of inventory which means that if on average there are 10 offers on a home, 9 buyers have to go compete for another home. Buyers are getting frustrated that they may keep getting beat out of buying thier dream home. So buyers here are some tips to give you an edge if you are not an all cash offer when having your Realtor submit your offer:
1) May sure you have a full application into your lender and the file has been approved and not just a quick pre-approval and get it in writing.
2) Provid proof of funds available to close so there is not doubt in the seller’s mind that you have your money ready to go.
3) Make your best offer so the seller has less to think about. Strong price backed with comparables to show seller the home should appraise, quick close of escrow, and short contingency periods if this is all possible.
4) Make sure you include a personal letter to the seller as to why you love thier home, about you, annd your family if applicable, and how come your offer is the one to go with. If you can include a photo of yourslef in your letter so the seller feels they are dealing with a real person and not just paper in front of them.
All this may not gaurantee an acceptance but will deffintely raise your percentage of an acceptance. Don’t get discouraged and make sure you and your Realtor are on the same page of the extra time and work needed to present the beat offer to that seller. Happy house hunting and you will find the perfect home for you!