Linda Dye's Blog

What do you mean they didn’t counter us?!

The wrong offer can cause a buyer to miss out.

I recently left a client speechless. 

Ok, it wasn’t because he was so happy he didn’t know what to say. 

It was shock. Pure, confused shock.

After looking at properties for a month or so, he found the “perfect” one he wanted to buy.  After showing him the comps, he understood and agreed that the price was very reasonable.  He even felt he would be willing to pay a little over asking price. 

Wonderful!  I will write an extremely competitive and aggressive offer and get my client this house!

 (sigh)

But, much against my recommendation and disregard of the intense competition, he decided to see if he could lowball and get it for less. He thought they would come back with a counter and give us the opportunity to budge a bit. 

 “Go in strong!” I said. “Don’t play games. They don’t have to counter, you know?”

“What is this crazy talk, Linda?” he must have thought. Maybe he considered I was losing it.

But, as much as it made me shudder, I did what my client wished. So, as I cringed and emailed the offer, my client hopefully awaited the “oh, surely they will counter us” counter. So he waited…and waited.

I called the listing agent. “Sorry Linda, but the seller decided not to counter.  They’ve accepted another offer.” (click)

As a fellow agent of mine says, “Just you guess what?”  My client was speechless.

He hadn’t realized how intense this market is.  When you see something you want, you go and fight for it. Be strong, be aggressive and, please, take my word for it.  I am here to help.

After that and about two weeks later, I, again, left him speechless.  This time, for all the right reasons. He received the call from me he had been waiting for: “They accepted your offer.”

Remember when I explained that as inventory stays low in a highly demanded area, prices start going up?

So great news for the sellers! …  but buyers? - time to tap into your inner courage and put on your boxing gloves.  It’s gonna be a great victory, but it ain’t gonna be pretty.

In a market such as today’s, a real estate phenomenon called “price creep” occurs.  Here’s the lowdown: A buyer begins at a price range then as the house hunting continues and negotiations begin, that price range begins to “creep” up. With the stiff competition and lack of inventory, you may find yourself on the higher end of where you had originally considered. So price creep isn’t always so bad, as long as you are aware of it, flexible in your purchasing power and choices, and in for the ride. You don't need a crystal ball, you need an informed, proactive and aggressive agent.

So:

You love the place I showed you.

You give me the go ahead.

You write your offer.

You plan,

you hope,

you meditate,

you pray,

compass out the stars,

talk to your therapist,

consult with a physic…  

Let’s go back.

You love the place I showed you.

You give me the go ahead.

(Here’s the important part)

Strategy!  We have to think, plan and determine bottom lines now.   NOW, I SAY!

I know it is natural to not feel the urgency.  Maybe you are already looking at homes at your max and do not have room to wiggle. Maybe your plan was to place an offer, lower than asking, wait for a counter, etc.  We’ll do a dance for a while and see where we end up.  NOPE. Reality check? Not in today’s market.  No time for games people.  And don’t think for a second that a seller HAS to counter you back.  With multiple offers becoming a norm, some low or weaker offers may not even get countered.

So you were willing to go over asking but didn’t get a chance because you didn’t receive a counter.  Sorry. I truly am.  Don’t play coy, show them your inner lion! This is a time to be aggressive and go get what you want!  Don’t believe me? Go ask your physic.

I’ll be he here waiting. (She’ll tell you that, too.)

Linda Dye
(818) 321-3311

You are a qualified, ready and beyond enthusiastic buyer.  You’ve been pre-approved, made your list of needs and wants, and my number is set on your speed dial.  You search the web, drive neighborhoods and respond to my emails within minutes.

I show you a house you love.  I insist you act quickly.  You head my warning and make an offer. Good.

You wait… and wait.  You call me, I call you, we email. 

Then I get the hopeful call…let me rephrase.  I call the listing agent again for an update.  Update given.  I call you and as you quickly answer my call to hear hopeful news, it happens.

“You were outbid… again.”  Crap. 

Hey buyers, I hear you and I understand your pain.  Remember when I talked about the intense demand and the low supply?  Yup.  So what’s a great buyer like you to do?  Be patient.  I know, I hate it, too.  And what’s a bigger kicker is that we are also dealing with all the cash buyers. 

Where the hell is all this cash coming from, anyway?!  Investors.  Don’t get me started.  But don’t let them get you down. 

The key here (no pun intended) is to keep moving (no pun intended) forward.  When one door closes (no pun…) You get the point.

Hang in there, my awesome, strong, patient and hopeful buyers. I’ll keep cheering you on!  And when you are finally sitting pretty in your new, wonderful home, this will all be but a blur.

Hey you!  First-time homebuyer!

Yeah, I’m talking to you!

Home prices coming back up, the job market stabilizing, and mortgages rates at an amazing low making homes more affordable than recent years.

So, who’s it gonna be?

Generation Y, I’m ready for you!

Today’s buyers are not going to make the same mistakes others made a few years ago.

You guys are on top of this. You search the web, read blogs, you do your research. 

You pull out your iphones, androids, show me apps, and tell me about sites I never knew about.  You talk to me about comps you saw. Hell, you recite articles to me.  You are beyond informed. That’s awesome.

You’ve witnessed the recent mortgage meltdown and all the consequences that affected so many because of it. You may have worried about this economy.  You were smart, maybe lived at home a while and saved your money. But you are still young enough to embrace life by its you-know-whats and live! 

You’re all grown up now.  It’s time to take that hard earned savings and become the proud owner of your own place.

So, get out your iphone, android, ipad, tablet, laptop, notebook… Click on the links, tabs, facebook, zillow, trulia…send me a text or email…ah hell, call me, even.

Are you becoming a Home Buying “Old Maid”?

Sorry if I offend…but I am here to help.  Just as a good friend will tell you what you may not want to hear, but rather what you have to hear, I am going to give it to you straight.

I understand you want to find the “perfect” house.  But, here it comes….

It doesn’t exist.

Now, before you get upset and curse my name, remember I am here to help.

I know you have high expectations for what is potentially the biggest investment you will make. Yes, be picky about the area, if that is important to you.  But have you considered if your expectations match up to you buying power?  Is the home you dream of in your realistic budget?  Could you, just perhaps, make changes throughout the years to custom design your home to finally be the “perfect house”?  See, “perfect” is all relative anyway.

Here is my fear: 

You see too many homes, each one has something you don’t like, nothing is good enough, you can’t distinguish one from the other anymore, it is all a big, sad blur and there you sit, all alone, NOT inside your our home.

Get it?

We are in an intense market.  Many properties are receiving multiple offers and selling over asking price.  The competition is stiff and the good ones are going fast. Don’t linger… a buyer senses an eager, strong and ready buyer. 

Demand is high and supply is low. Period.

All that mumbo-jumbo about many fish in the sea?  Not here.  Waters are clear and the cute, wriggly fish are scarce.

Get em’ while they’re good! 

Now, call me and tell how you like them apples.

-Linda Dye

(818) 321-3311

www.LindaDyeRealty.com

What is up with all this competition?!

We are in a very competitive market in which multiple offers are quite common.  So, what will make your offer stand out?  No, the answer isn’t always just “the higher price”.  Highest price may not always be the strongest offer. One way to stand out is to distinguish you from the other buyers.  What makes you special…or rather, the best offer they should consider? Aside from me verbally telling the listing agent, you should consider submitting a "Cover Letter" with the offer.  Let me explain.

Now, I know how special you are, but to the other guy, you are a mere number and a name.  Let’s make your name come alive. Explaining your situation can give your offer an extra boost.  For example, if you are buying from a longtime owner, pride of ownership may be very important to them. Tradition, longevity and knowing that a family is going to take over the lovely house they have called home for so many years may appeal to them. (I have had clients, including myself, win homes because of this very reason.)  Or, if you own another property and are converting it to a rental, this may throw up a red flag when offers are reviewed.  Why? Well, if a buyer is converting their current property to a rental but there is not 30% equity in the property, the buyer has to qualify for both mortgages according to current lending rules.  Now, if you have done what you should and have gotten preapproved, this issue has been addressed and you can apparently afford both mortgages and you are good to go. (If you are a VA buyer and the military has requested you to transfer, you do not have to have equity. You are an exception…in more ways than one, I say. Thank you for your service!)

Without communication via myself to the listing agent verbally or written specifics that will separate you from the crowd, you may simply get lost in the pile.

Look, the cleanest, strongest offer wins.  Whether that is due to the purchase price, the financing terms or just an extra tug at the seller’s heart, the prize is both parties involved wining in the end.

Now let’s play!

I am a Realtor in Los Angeles.  Surprise!

… Burbank, Toluca Lake, Valley Village, Glendale, Highland Park, Eagle Rock, Studio City, Los Feliz, La Canada Flintridge…. You get the picture.

And the most asked question I receive is, “So, how’s the market?’

“How’s the market?!” I respond somewhat excitedly.

This usually is followed by a confused, blank stare back.

Confused? I know how you feel. Let me explain.

I recently listed a property in Sierra Madre. This house is in a wonderful location, surrounded by beautiful mountains and lovely homes. It has been a bit forgotten…if you know what I mean. It needs work. Owners need to move for financial reasons. No problem.  I’ll list it and get it sold.

I put it on the market. We schedule limited showings.  I get bombarded with calls and emails.  In less than 2 days, I receive over 15 offers, majority of them all cash buyers. There is a bidding war. It is on!

What is this?  I speak with my colleagues on a daily basis about this market. We are also baffled. We smile, list the homes and throw our hands up.  This is awesome.

How’s the market, you ask? 

The market is intense!  We are surrounded with a high demand and a low supply. Come on guys, we learned about supply and demand in high school. So what does this do? It creates a massive, albeit somewhat healthy, fight for properties.

So.

As a seller, congratulations! No better feeling than having multiple offers. Sit and let them fight it out. I’ll be the referee.

As a buyer, you must be aggressive!  Take it as a wonderful compliment of the area you are bidding on.  Make the cleanest and strongest offers.  I’ll be your coach.

How’s the market?  It’s awesome!  Let’s play.

Linda Dye

Realtor®/Consultant 

818-321-3311

Linda@LindaDyeRealty.com

www.LindaDyeRealty.com

DRE # 01858104