Offers That Stick
Offers That Stick
The phenomenon of multiple offers, a situation in which multiple buyers submit bids for a house and end up competing for it, has returned as of several months ago. It was prevalent in the strong market a couple of years ago and, now, the dropping prices, some sweet deals on distressed properties, relatively low interest rates, and an $8,000 federal tax credit for first-time buyers and a $6,500 credit for repeat buyers, have caused our local markets to heat up again. In fact, California practitioners report an explosion of competitive bidding, and in some places supply actually is shrinking and prices are ticking up. The result is that some buyers who are anxious and able to enter the market still are losing out.
For example, some of our clients have bid on—and lost out on—more than half a dozen properties. Wondering how to prepare? Keep in mind:
• Competent advice: Seek REALTORS® like Team Green who can explain how competitive a market is, and where you fit with it, and who are able to prepare you for the process—and potential disappointments—ahead. Most importantly, take their advice and study the comparable properties with them to ensure you understand the market.
• Investor competition: You may be competing with investors delivering contingency-free, all-cash offers. Be prepared to deliver your best offer, if need be. Also, get prequalified for loans, have all paperwork in order, and know precisely how high you can afford to bid.
• No automatic low balls: Despite market challenges, don’t automatically make offers dramatically below asking prices. If you’ve been eyeing a property that has seen multiple price reductions and you’re ready to jump, others likely have been doing the same. It makes for stiff competition. Some think that if an asking price is $325,000, they can get that house for $250,000. That’s not the case. Study neighborhood comparable properties that are for sale and that have sold and consult with your REALTOR® to develop strong, realistic offers.
• Buy less: Just one reason to look at property below your means is that you’ll have money in reserve to bid up if you need to.
• Short sales: The process can be tedious and lengthy. Short sale acceptance dates can run two weeks to six months. Negotiating short sales can be tricky, so be certain your agent is experienced in the process. And know whether you have the stomach for such a route. Team Green has certified short sale and foreclosure experts to help you with these special purchases. Make sure that if you decide to choose someone other than Team Green to represent you, that they are experts in the process.
• Bank-owned property: Again, you may be competing with investors. Work with your agent to determine properties’ worth. Make your offer as attractive as possible. That may entail offering a larger down payment, not requesting closing cost assistance, or agreeing to a shorter timeline. The more you have your ducks in a row before making an offer, the more sellers will see you’re ready, willing, and able to complete the transaction.
If you are considering selling, visit our free offers page by clicking here to get a free evaluation of your home. Buying or selling, if you are ready to make a move call us at 818.LVTMGRN (818.588.6476) or click here to contact us. We look forward to hearing from you.
Still not sold on us? See what our clients are saying about us by clicking here.
The phenomenon of multiple offers, a situation in which multiple buyers submit bids for a house and end up competing for it, has returned as of several months ago. It was prevalent in the strong market a couple of years ago and, now, the dropping prices, some sweet deals on distressed properties, relatively low interest rates, and an $8,000 federal tax credit for first-time buyers and a $6,500 credit for repeat buyers, have caused our local markets to heat up again. In fact, California practitioners report an explosion of competitive bidding, and in some places supply actually is shrinking and prices are ticking up. The result is that some buyers who are anxious and able to enter the market still are losing out.
For example, some of our clients have bid on—and lost out on—more than half a dozen properties. Wondering how to prepare? Keep in mind:
• Competent advice: Seek REALTORS® like Team Green who can explain how competitive a market is, and where you fit with it, and who are able to prepare you for the process—and potential disappointments—ahead. Most importantly, take their advice and study the comparable properties with them to ensure you understand the market.
• Investor competition: You may be competing with investors delivering contingency-free, all-cash offers. Be prepared to deliver your best offer, if need be. Also, get prequalified for loans, have all paperwork in order, and know precisely how high you can afford to bid.
• No automatic low balls: Despite market challenges, don’t automatically make offers dramatically below asking prices. If you’ve been eyeing a property that has seen multiple price reductions and you’re ready to jump, others likely have been doing the same. It makes for stiff competition. Some think that if an asking price is $325,000, they can get that house for $250,000. That’s not the case. Study neighborhood comparable properties that are for sale and that have sold and consult with your REALTOR® to develop strong, realistic offers.
• Buy less: Just one reason to look at property below your means is that you’ll have money in reserve to bid up if you need to.
• Short sales: The process can be tedious and lengthy. Short sale acceptance dates can run two weeks to six months. Negotiating short sales can be tricky, so be certain your agent is experienced in the process. And know whether you have the stomach for such a route. Team Green has certified short sale and foreclosure experts to help you with these special purchases. Make sure that if you decide to choose someone other than Team Green to represent you, that they are experts in the process.
• Bank-owned property: Again, you may be competing with investors. Work with your agent to determine properties’ worth. Make your offer as attractive as possible. That may entail offering a larger down payment, not requesting closing cost assistance, or agreeing to a shorter timeline. The more you have your ducks in a row before making an offer, the more sellers will see you’re ready, willing, and able to complete the transaction.
If you are considering selling, visit our free offers page by clicking here to get a free evaluation of your home. Buying or selling, if you are ready to make a move call us at 818.LVTMGRN (818.588.6476) or click here to contact us. We look forward to hearing from you.
Still not sold on us? See what our clients are saying about us by clicking here.
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