Wednesday
Jul112012

Buyer Strategies for a HOT Market

I sold three homes in the last month...all with multiple offers and for all cash! One of the three, a nice Willow Glen rancher on a large lot attracted seven offers and sold for eight percent over the asking price of $700K. A great market for Sellers but a big new challenge for Buyers in the Silicon Valley. The problem is the unusually low inventory of homes available to sell coupled with unusually strong Buyer demand. The challenge for Buyers used to be finding the right home on which to make an offer. The bigger challenge now is getting that offer accepted in the face of strong competition. Frustrating sure, but not impossible. Here's how:

  1. Make sure you have a strong loan pre-approval from a local lender.
  2. Team up with a knowledgeable, experienced, professional Realtor (I have a great referral if you need one!)
  3. Have a listing alert set up customized to your search criteria.
  4. When an interesting listing comes up, look at it ASAP, preferably the day it hits the market.
  5. Make a decision to write an offer...or not...quickly. Don't wait for the Seller to hold their first open house when all of your competition will see it.
  6. If it's a great house and you know there'll be competition, make a great offer. Make the offer tempting enough that the listing agent and Seller will think twice about not responding to it immediately. Don't worry about paying too much because your lender won't let you pay more than it's worth. It has to appraise and if it doesn't, you can renegotiate or...walk away.

Sound a little scarey? It might be but what's the alternative? Until the market turns, you can play to win or be timid and lose out to more aggressive Buyers while this low price and interest rate opportunity passes you by.

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