How to compete in multiple offer situations - Marin County, CA.
Marin County Real Estate is always hot. Marin is one of the most sought after places to live and the real estate market here is never dull. With the low inventory and attractive rates, the multiple offer situations are once again becoming the new standard. This applies to all homes priced at or below market value. No matter if it is a major fixer-upper listed at $400,000 or a $4 million gated estate. Add to that the likeliness of cash buyers and you have the scenario that most buyers are facing in today's market.
Does the highest price always win in these bidding wars? No, not always. But often. How can an "average buyer" compete against cash or higher prices? My advise to clients is to get a strong and firm pre-approval with a local mortgage broker. To make sure that they can offer very short contingency terms, i.e. short times for inspections, appraisal and loan approval. Once the seller feel secure, they can usually "afford" to wait 20 or 25 days to close. Cash buyers are usually not the ones offering the highest price. They rely on the saying "cash is king" and that can annoy sellers who may favor someone well qualified for a loan as long as they can move fairly quickly. In the end the seller may only loose a week or 10 days by accepting the non-cash offer and many times that translates to $20-50K more in price. Another huge advantage for first-time home owners is that they can make a "non-contingent-on-sale" offer. Meaning they don't have to sell a property before buying. Many buyers buying up (in need for a bigger home), have to sell their current home which can delay the new escrow.
Finally, let the seller know "who you are" and "why you love their house". Real estate transactions may be a pure business for some, but often so strong emotions are involved. Sellers who have lived happily in their home for 35+ years usually like a young family's plan to move in rather than an investor's plan to rebuild it and sell for a profit.
Good luck out there and let me know if I can be of help. I've assisted countless of buyers to be happy and proud home-owners during the past 24 months here in Marin County despite the tough market conditions. See testimonials on http://www.yelp.com/biz/helen-luttemo-san-rafael
My cell phone number is (415) 244-4414. Email: Helen@MarinModern.com
I look forward to assisting you and your friends!