Is history repeating itself?
In recent months the entry level Real Estate market has shifted and become for some people, a competitive sport. If priced correctly homes aren’t lasting past the first week’s open house as buyers are frantically racing to submit offers. Supply is low and demand is high and we all know with that combination multiple offers arise. What’s good for the goose isn’t necassarily good for the gander.. is history repeating itself? Is what is occuring now exactly what we saw a few years ago when home prices soared and multiple offers were just expected? There are many factors that come into play, some may argue this market is nothing like the one we saw a few years ago. We can say for sure banks have tightened up their guidelines to put it gently. Unless you can prove you qualify, you don’t get approved. Interest rates are lower and home prices have dropped so buyers in today’s market essentially have more buying power. Appraisals have been tightened and often times more then one is necessary to get approved by the lender. With that said, is it really all that different? Are consumers so eager to purchase a home for fear they will “miss the boat” that they are over extending themselves to make it happen. Hopefully with the tightened lender guidelines, history won’t repeat itself. What are your thoughts as I would love to hear them…
Nicole Machado www.mve2day.com
How much higher do I offer?
About one & a half year ago, often I was asked “How much lower can I offer?” It seems like those days are gone. Last week I wrote 3 offers for 3 of my clients. And yes, you guessed right, I was asked every single time, “how much higher do I offer?” Real Estate market has clearly changed, I’d say, since 2 months ago. Many properties receive multiple offers after only a short number of days on the market. Most offers are over the asking price. One of my clients offered $530,000 on property listed for $499,000, and his turned out to be one of the 14 rejected offers. From my experience and what I hear from my colleagues, offers may need to be over 10% of the list price to be considered a strong offer. What has been your experience recently?
5 Tips To Improve Your Odds in a Multiple Offer Situation
“Multiple offers? I thought we were in a Buyer’s Market?” Well, it certainly IS a great time to buy in that we are seeing interest rates that are still at historical lows coupled with housing prices that are more affordable. But on the other hand, here in the San Francisco & Peninsula area, we are seeing an increasing number of multiple offer situations. For example, on the last home my clients submitted an offer for, there were 26 (yes TWENTY-SIX!) offers, all of which were put in within the home’s first two weeks on the market! Whatever the reasons for this, it’s become clear that if a home is well priced or below market value, there’s a good possibility that prospective home buyers will find themselves in a multiple offer situation. Here are five tips to help make your offer stronger:
Homes Are Moving Quickly!
I recently started working with some first time home buyers. We made an appointment to view four homes in Daly City and South San Francisco. They have not had much experience viewing homes and wanted to get their feet wet to see what was offered in the current market.
As always, I do my best to preview the homes I show, as to gain as much knowledge as possible about the homes we are going to view.
What we were surprised to find out is that, out of the four homes we planned on viewing, 3 of them were marked pending or were going to be marked pending soon. All of the homes were vacant and have been on the market less than a month. Read more
Missed Opportunity ?
Recently, it seems that all the buyers have come out of the wood work….
We have been inundated with large groups at our open houses and receiving large amount of “sign calls” and inquires on our websites…
But the one thing that has not changed is fear…Depending on where the property is and the price range that it is in, there is a different strategy on how to make an offer. I think the public understands that the interest rates are great, and inventory has lessened, and buyers are hearing about multiple offers; but there is something that is preventing them to make a move. My advise: Work with your agent…let them help you understand… ask a lot of questions.
Just this week, I have encountered buyers who I met a few weeks ago, they saw this home in their price range, and have their financing in order, but they needed time to “think about it”. When they came back to reconsider the home, it was gone (in escrow with multiple offers). Had they written a couple of weeks ago it could have been theirs.
Don’t lose your opportunity. There are several ways to protect yourself from competition and allow you to participate in obtaining home with your price and terms.
One Buyer’s Loss is another Buyer’s Second Chance
30% of Real Estate Deals Don’t Go Thru. Maybe it is more, maybe it is less, but that is a pretty good estimate. So what does that mean to buyers and their agents? It means the property you lost out to in multiple offers or just because someone was faster than you does not mean it is gone forever. Read more
SSF Real Estate becoming a competitive sport…
Get on your boxing gloves and jump in the ring, but don’t wait for the bell to ring or you’ll be knocked out of the competition. In the past few weeks homes in SSF have been flying off the market. I have been working with first time home buyers for about a month now that desperately want to purchase a home in SSF. They are solid buyers that have excellent credit and a good down payment, however they keep getting beat out on properties by all cash offers. The two most recent homes they bid on had a tremendous amount of activity. One had 18 offers and the other had multiple offers within a few Read more
Offer Pricing
I have several buyers very confused. They offered the asking price for a Daly City home but were outbid by $50,000. This is not supposed to happen in a today’s buyer’s market. The low price is a marketing tool and not a realistic list price. I explained before making a purchase offer, buyers must determine the true present market value. http://www.pruvoices.com/2008/10/what-is-market-value/ Read more
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