Hello Blog Readers – I jumped for joy when I read this article and thought I’d share it! Read on if you want to be an owner and not just a buyer in this Bay Area Real Estate Market!
Buyer Cheat Sheet for a Seller’s Market
In a seller’s market, home buyers need to be willing and able to act fast to snag the home they want. This spring, areas across the country are facing a limited number of homes for sale. Realtor.com® offers up a cheat sheet for surviving a seller’s market.
- Be on call. “If you’re only looking now and then when it’s convenient, you’re probably wasting your time,” says James Malmberg, a real estate professional in Sherman Oaks, Calif. He suggests treating house hunting like job hunting. If someone calls with a lead, follow up promptly to gauge whether it could be a good fit and don’t linger.
I have to laugh – I just texted my buyers to show them a house BEFORE the open house! Waiting till the weekend doesn’t work! Get out and see homes during the week – when you competition doesn’t even know about the house.
- Bring the paperwork. To be taken seriously, buyers would be wise to get a mortgage pre-approval letter as well as a “proof of funds” form from their bank to show they have enough to cover a down payment. They’ll be able to act quicker when they do find the right house.
This is where I draw the line. The Caton Team will not show property to a buyer until they are totally pre-approved. I know this might sound mean – but when you go house hunting – guess what? You will find a house! And in order to compete with other offers – you need to have that loan DONE! There is not time to get approved when you find the one – we hardly have time to review disclosures and write the offer. So – if you truly want to become an owner – you need to get pre approved, submit all the necessary documentation and then – you are ready to buy!
- Limit the contingencies. In a seller’s market, buyers may need to drop some of the contingencies to score the house. Sellers prefer the fewest number of hurdles to closing as possible. If your buyers come in with several contingencies — such as “if” they secure financing — the sellers are more inclined to bypass their offer and take another with less hassle. Also, “don’t waste your time lowballing a seller,” advises Sean Kelley, a real estate professional with Howard Hannah in Pittsburgh, Pa. “Always put in an aggressive offer.”
INDEED – The Caton Team will inform our buying clients as to where the market could take the offer. You must put your best foot forward – because you may not get a chance at a counter offer. As for contingencies – each home has its own story – and we approach each offer the same way. Depending on how many inspections and disclosures are provided in advance will guide each client on how to tackle contingencies.
Cast a wide net. Search for homes outside prime locations if faced with limited or high-priced choices. Buyers need to carefully consider what they’re willing to compromise on. “Sometimes properties sit, even in a seller’s market, because of a problem that is scaring other buyers away,” such as some renovation work that may need to be done, Malmberg says. Those “flaws,” however, might not be a big deal to your buyers. “Finding a house this way can also cut down on the amount of competition you will face,” Malmberg adds.
As I always say – buying a home is a processes of elimination – not a process of selection. So look up, look down, look side to side. Consider areas that are close to your target but may be overlooked. You won’t know what you’re missing till you try.
The Caton Team is happy to sit down with anyone thinking of buying and discuss the market, how to save, how to be prepared to buy and come up with a plan that works for you! How can the Caton Team help you?
Thanks for reading! – Sabrina
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Thanks for reading – Sabrina
The Caton Team – Susan & Sabrina – A Family of Realtors
Berkshire Hathaway HomeServices – Drysdale Properties
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