Home Buying in Stockton>Question Details

Acadianwife, Home Buyer in Stockton, CA

I have put 3 bids on three houses in the last couple of weeks and a cash offer always beats me out. What are some tips to make sure I get the house?

Asked by Acadianwife, Stockton, CA Thu May 3, 2012

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Hi
It is a very competitive market right now. Cash Buyers have definatly been active in 2012.
1. Speed is the name of the game. One tip is to get your offers in asap. Sometimes this requires writing offers before seeing the home. Once accepted you can decide if you really love it.
2. Most homes are selling at or around list price. You may need to think about offering above list price to compete with the cash buyers.
3. Tell your story. Are you just submitting a boring offer like everyone else?.Tell the seller who you and your family are, why you like the house and your what your plans are with the home. Get creative!

Good luck. Let me know if you need any other helpful tips.
David Mckeever, broker
McKeever Real Estate
(209).483-6523
0 votes Thank Flag Link Thu May 3, 2012
I can not do cash offers, but I can bid higher than cash. Do you really think a buyer letter will work with banks or investors? My realtor says the cash offers were the same or higher than my offer. So such things as absorbing all of the closing costs and fees, not asking for splitting a home warranty will give me more of a chance? Thank you for your help. I do not have to love the house I am buying it for my daughter for while she is in college...it just has to be better than investing in the dorms.
0 votes Thank Flag Link Fri May 4, 2012
To increase your chances:

(1) Make cash offers.

(2) Make offers higher than cash offers.

(3) Be sure you're making the offers quickly.

(4) Keep your offers as "clean" (as free from contingencies) as you feel comfortable with.

(5) If you're focusing on just one type of situation (i.e., foreclosures), broaden your focus.

(6) Eliminate competiton by bidding on houses on the market for sale. (Search for houses for rent by out-of-town owners. It's absolutely legal and permissible to make offers to purchase properties listed as rentals.)

(7) Ask your Realtor for additional tips.

Hope that helps.
0 votes Thank Flag Link Fri May 4, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Bottom line? Faster and higher offers. It's a tough market out there for buyers these days. Work closely with your Realtor to get your offers in quickly and keep your fingers crossed each time.

Good luck!
0 votes Thank Flag Link Thu May 3, 2012
Cash, cash, cash always works.
0 votes Thank Flag Link Thu May 3, 2012
Were the cash offers comparable to your offer price? What was the separation? If less than 3% you may need to bid higher and/or try a "cleaner" more efficient contract. If you love the house, try doing pre-offer inspections and have less contingencies in your contract. Make an emotional connection with the sellers (submit a buyer letter). Have your agent present the offer to the seller in person. Be available after submission of your offer to respond quickly to the seller as they review multiple offers. Make sure your agent conveys that you are available to respond on the spot. Send in a fully signed disclosure package with your offer, etc...

Good luck on the next one.

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
0 votes Thank Flag Link Thu May 3, 2012
"to make sure" We could give you tips to make acceptance more likely or less likely, but really can't guarantee you acceptance on the house of your , er well, if not the house of your dreams, the house of your catnaps.

Sellers markets are incomprehensible to buyers that haven't suffered into one before.

Make acceptance less likely: long contingencies on anything, asking for anything that you would normally ask for in a balanced or a buyers market. Such as seller paying for closing costs, termite and other inspections repairs and clearances.

Making acceptance a little more likely: Offering market value to be the highest bidder, offering a higher than average earnest money, writing short contingency periods, Agreeing to take house as is, (subject to inspection contingency, of course) Reading and following the sellers offering instructions.

Making acceptance even more likely: Showing funds to close and reserves as well as the loan approval letter. Though you may not have all cash, you may be able to be the high bidder by showing that you have the cash reserves to make up the difference between a low appraisal and your offer price.
0 votes Thank Flag Link Thu May 3, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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