I say this in the kindest and direct voice I can. But please keep reading…
The Challenge of Buying in Today’s Market
Inventory is low
Available homes is at the lowest point in over 6 years
Was 15 month supply in 2007 (Buyers Market)
Now 1.7 month supply in 2012 (Sellers Market)
Demand is high
Highest level of sales since 2006
Multiple Offers
Appraisals are conservative
Low comps due to distress sales
Banks lending conservatively
Multiple Offers are Common (I couldn’t stress this enough!)
Buyers underestimate the market
Investors are buying all the properties they can
What you need to know: You will be competing against other Buyers You might need to pay above “appraised value” You will most likely be buying a home “as is” You’ll need representation that will fight for you Market forces and time are against you There are no “bargains” . You can’t offer $450k on a property listed at $599k… especially when even the Zestimate shows a value of $697k!
What you need:
Prepare to be Decisive
Choose a Neighborhood – Not just a house
You need Access to Hidden Inventory (which is where I specialize)
You need a full-time, connected, and networked Buyers Agent who is fully committed to YOU. (Our team has 3!)
Have a strategy, a plan of action, and a timeline
How to Make a Winning Offer The secret to negotiating the best price
Disregard the asking price and the comps. Know the actual market value and base your offer on the right price to pay for the home. Your Agent should always provide a CMA for a home before you write and offer.
Make it personal. We “package” our Buyers so that we can eliminate any questions about the Buyer and get the Seller to want YOU to be the one who’s offer gets accepted. Look for personal things you have in common with the Seller. Consider a personal letter to go with your offer.
Write a “Clean Offer” Don’t write a blind offer. Your Agent can find out the Seller’s requirements are so you can write your offer with the most acceptable terms possible.
Make an impression with a significant deposit. You’ll have your inspection period with contingencies to allow you to do your due diligence. So, make your down payment the deposit.
Be prepared to show your pre-approval and proof of funds You want to be able to prove that you are the most reliable and desirable Buyer. Sometimes a Seller will accept a lower price from a stronger buyer.
Do“Drive By” before you schedule showings. You can usually rule in or out a house based on the street. Eliminate home shopping fatigue by going to see homes that have the neighborhood and street appeal you want.
Stay focused on your needs. Don’t get confused by looking at too many houses. Write down what your real requirements are so you don’t fall for more than what you need or want.
Know the Purchase Agreement ahead of time. You’ll need to know the basics of the Purchase Agreement so you’ll be comfortable signing it. You need an Agent who knows the contract inside and out and can use it to protect your interests and negotiate for you.
Shorten Timelines Besides the price, the terms of your agreement can make your offer more attractive. Shorter timelines for contingency removal or close of escrow can help you get better purchase price or win over other offers.
Don’t waste Agents time You can alienate the Listing Agents if you ask them questions or ask them for showings. ALWAYS work through your Agent.
Request Your Agent’s Escrow Your Agent will have more control over the transaction and more leverage to resolve any issues if the escrow is handled by an Escrow Company and Escrow officer your Agent has a working relationship with.
Have a Target Date You need to know exactly when you want to move. Establish a goal for when you want to be in your new home and plan a winning strategy according to that timeline.
Now get out there and get off the fence! Be realistic, have fun and move into your home before summer!
My team will give you 110% if you are focused and ready to go! We’ll always be honest and have your best interests at heart.
If you’d like a buyers consultation or just more info on the market.. please contact us today!
Danielle Ervin
Luxury Living in Chino Hills 