Unless the house is ready to be leveled, Buyers should notÂ waste their time with low ball offers.Â Even though the economy is still sluggish, signs of recovery are on the horizon.Â The number of homesÂ in San Diego County dropped to its lowest level in nearly 3 years combined with a 21.5% increase in theÂ home salesÂ from a year ago May.Â In addition,Â the number of Foreclosures and ShortÂ SalesÂ fell 44.8% in SoCal, the lowest level in four years.Â Â When the supply of homes is down andÂ the demandÂ is up,Â it is time to get serious with your offers.Â Â
Investors and first time home buyers are competing for the chance buy in.Â If you love a house, write a good solid offer that will beat out others.Â Even investors are competing for fixer uppers that can only be soldÂ using cash.Â Â Â If the home is priced appropriately for the condition, multiple offers are to be expected.Â Â How can you makeÂ an offer stand out?
OfferÂ a fair, reasonable price.Â Now is not the time to low ballÂ the seller.Â You will begin to see more variable price ranges looking for a little higher than the most recent sales.Â Â The price still has to be within a reasonable range for it toÂ appraiseÂ for the loan.Â
To avoid having the seller counter your offer, this is a good time for the Buyers' Realtor to contact the listing agents to ask if there is anything special they should know before writing an offer i.e. Â How long of an escrow would the sellers want? (30 days is the standard, but quite often sellers need longer); What title and escrow companies would the seller like to use?Â Â Â Make sure that all appliances,Â listed in the multiple listings,Â are to indeed remain and onlyÂ ask for those items.Â Â Often houses have furnishings and potted plants that really work with the house, but this is not the time to negotiateÂ furnishings.Â These can be discussed at a later time once you have your offer accepted.Â At the worst, you may have to find anotherÂ piece of furniture or new plants, but at least you have the house.
In most standard traditional sales the seller pays for theÂ inspection and work.Â Â Â Sometimes in short sales,Â theÂ termite report and work are covered and other times, like most Bank Owned Foreclosures, they are not paid for by the bank.Â Â
The standard contract calls for all contingencies to be removed within 17 days.Â You will definitely need the 17 days for appraisal and loans.Â Â If theÂ full loan approvals takes longer than 17 days, you can always ask for an extension.Â However, it is not recommended that you requestÂ the loan contingency extends untilÂ the loanÂ funds.Â WithÂ no time limit on the loan approval, theÂ lender may not feel theÂ urgency to complete the approval in a timely manner and extend out the escrow.Â Â Although,Â the contingency for theÂ physicalÂ inspections andÂ disclosures,Â canÂ be shortened 10 days.Â Â You will want to doÂ the physical inspection as soon as possibleÂ to know if youÂ want to proceed with the sale.
GETTING TO KNOW YOU
Quite often, in a market such as this, you will getÂ identical offers.Â HowÂ are sellers to choose?Â Selling and buying a home is very emotional.Â Since the sellers haveÂ a lot of memories tiedÂ in the home, theyÂ want toÂ like the peopleÂ they are selling it to.Â You may want to write up a positive short biography about yourself including a photoÂ and anything that will make you stand out from the next buyer.
Now is the time to step up and take your swing.Â
ABR, CRS, E-Pro, GRI, SFR
Coldwell Banker Residential Brokerage