Joan Patterson's Blog

I am not sure about you, but I know that every day I have been out showing property, writing offers, and to find out that there are multiple offers-even on a home that was just listed that day!  I have been saying repeatedly that the inventory is low, while the buyers are many!  Almost too many buyers for the market right now.

Here are a few reasons for the inventory being down:

1.  Most home sellers do not want to sell unless they have to and also unless they have the equity!

2.  Banks are taking longer to foreclose and are not releasing the foreclosed homes for sale right now.

The decrease in homes is not new, but it has been going on for the past year.  With this in mind, this means that it is harder to actually get a home with the first offer you make.  Don't fall in love with a home because of the multiple offers that are going on right now.  You may not get it because someone else may have a better offer.  Always make your offer your best offer if you love the home.  That way, you will know you did your best and if it does not work out, you won't wonder if you had offered more, would you have been the one that actually got the home?

I have been doing a lot of research and have been asked by numerous clients if I think the market is stabilizing and YES, I think it is stabilizing in Southern California.  I cannot say this for other places as I do not know the markets there.  When there is a drop in the number of homes that are in the MLS and numerous offers being made on these homes, it does show signs of stabilization.  Median home prices have started to increase in the Los Angeles area which also points toward the market stabilizing.  Of course, none of us have a crystal ball, but this seems to be where the market is going.

Good luck out there!

Joan Patterson, B.A., A.S.P., G.R.I., Realtor, License #0141647
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
951-204-1864
www.calljoan4homes.com
www.socalreopartners.com
calljoan4homes@aol.com

I get calls all the time from buyers who say they are DONE with their current agent.  They tell me their current agent is not doing a good job because they have made multiple offers on homes and they have not gotten one house.  I get very saddened by this only because I know from my own experience that it is tough out there right now for agents.  There are so many numerous factors that are hindering the realtors and clients do not understand it.

First, people want to see a particular home.  So the agent will call only to find out that the home really is not active and that it has multiple offers on it.  The status really and truly should be changed to pending or back up or hold depending on the situation.  I cannot tell you how many times I call only to find out a home is not available.  Many times, I can leave messages for other agents and they never get back to me because they are "too busy" aren't we all.  The board of realtors will be fining agents for not putting homes that truly are not active in their proper category so the other agents do not waste their time.  I called on over 40 homes in Fontana the other day and one 1 was truly available.

The offer you make needs to stand out.  What do I mean by stand out?  Well, first you need to make sure you are working with a reputable bank...not ABC Mortgage in timbucktwo...you need to work with someone that people respect, such as a big solid bank like say for example Wells Fargo would be good.  Anyone knows they are very strict with their lending.  So, get a pre-approval, not a pre-qualfication letter.  Also, when trying to buy a REO listing (Bank Owned) they do have you cross qualify with their lender which is normal.  Many people do not understand this and get upset over it.  Just do it, otherwise, your offer will not even be looked at by the bank.

Don't ask for a lot of concessions.  By this I mean, don't ask for closing costs if you don't need them.  That will net less to the bank and someone may outbid you on a property.  If at all possible make your best offer.  I always run comparables for my clients so they are not over paying.  One thing many people think is if they are the highest and best offer out there they certainly will get the house.  Not necessarily if it is over the appraised value the bank won't allow the sale to go to you.  They know the market and know what the home should sell for, they want to get the closest to that they can.  So, make sure you know what the house is worth and don't overbid.

The type of financing really matters to the banks these days for an REO listing or (Bank Owned).  Cash is best, but most people don't have all cash.  Conventional financing is best over FHA/VA loans.  However, it is what it is and just keep trying.  The inventory has been down therefore, homes are getting multiple offers.  You want to get over to see a house as soon as it is listed and make an offer right away, don't wait or it will be gone.

Don't blame your agent if he/she writes up your offer how YOU wanted it.  Remember, your agent represents you and you need to make sure you are happy with it before it is submitted.  It is not totally an agents fault, we must take responsibility for our own actions and not be so tough on the agents.  It is hard to get a house accepted with you are competing with so many other offers.  You need to figure out what you can live with and not ask for on a home to make your offer stand out.  And, you need to ask yourself how much you are ready to pay.  See the comparables that your agent should provide you, and if they don't ask to see them.

Keep your offer as simple as possible and make sure it nets the bank or seller the highest amount possible and that should help you have a stronger offer.

Good luck out there!

Kind regards,

Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
951-204-1864
www.calljoan4homes.com