How To Make An Offer On A House In The South Bay
How To Make An Offer On A House In The South Bay
Have you ever made an offer on a house only to get out-bid?
Have you wondered… what’s the “secret” to getting your offer accepted? I’m going to share my 30 years real estate experience right now & show you how you can make better offers that will help you get your offer accepted! WOOT!
It’s early 2021, we’re still in the stupid pandemic, the real estate market is still hot because of super low inventory and the lowest interest rates ever! (whisper… ) In the 2’s & 3%’s! FIXED!
Remember trying to buy toilet paper in March of 2020 when the Stay at Home Order hit?
Well… this real estate market is Juuuuusssst like that! A lot of buyers and not a lot of TP**
**TOP PROPERTIES!
If you want to buy a house in this kind of market, you have to be smart ….otherwise you’ll waste a lot of time and write a lot of offers and never get yours accepted. And you’ll be BUMMED!
We’re going to go fast… so PAY ATTENTION!
#1-
First you have to understand what the real estate market is currently doing in your area. Is it hot or not? Is it a sellers market or a buyers market or neutral? A buyers market is when there’s an over supply of inventory and average days on market are over 90. If it’s a sellers, market… like what we’re in currently… there’s usually a low supply of available homes to buy and there’s often multiple offers on houses and the price gets bid up higher than list price.
This is IMPORTANTE!!!
If you don’t know the current market temperature… you can waste a ton of time ORRRR you could over pay for a house … if it’s a buyers market!
This video is about working in a HOT sellers market where you’re competing with other buyers to buy a house… if the market is not like this… then still do most of this anyways… it all helps you get the deal!
#2-
If you’re working with a real estate agent, discuss this BEFORE going out and looking at homes! You need to make a PLAN! More on that in a minute.
#3-
If you’re getting a loan to buy the house, you need to get Pre-APPROVED Prior to going out & looking. Say what? But I have a Pre-Qual letter right here from Bank of Nowhere!
yeah… NO!
#4-
Know what the typical contingencies are and their typical time frames
ALL Inspections -17 days from acceptance
Appraisal 17 days
Final Loan Approval 21 days
#5-
Consider shortening those time frames to help your offer …stand out.
For a Seller, shorter is better. TALK with your lender FIRST before you shorten your appraisal and loan approval contingencies!
#6-
If there’s multiple offers, make a strong enough offer that the seller will counter you. Most sellers will only counter the best 2-3 offers, you want yours to make that short list. Remember, other buyers will be doing the same exact thing! If it’s on the market 20 days or less, you’ll probably pay list price … or higher. Don’t be surprised if this is the case!
STOP!!! I know… I know what you’ve been told… by your dad… or your grandma… or your neighbor… or that guy on the plane… or Clark … from accounting…
They told you to ALWAYS LOW BALL! NEVER PAY FULL PRICE! ALWAYS BID LESS! Remember my point #1? Understand the current real estate market environment BEFORE you start looking and making offers?
I KNOW this goes against everything you’ve heard… and you don’t want to over pay… and you love negotiating…
I get it… you’re normal!
Yet, in this current sellers market… you don’t have a lot of leverage if you’re a buyer,
so you have to be prepared to do what all the other buyers are doing in order to get into a house and lock in that low interest rate. It’s that simple.
Don’t over think it and lower your expectations so you can win & not keep losing out because of dear old Dad
If there’s multiple offers, be prepared for the “Highest And Best” clause. Often times a seller will counter the strongest offers with this vernacular. It means, come back with your highest and best offer and terms…
This is where a lot of buyers lose out… either they low ball the price because of what Dad told them… or they want to slowly negotiate upward in a highest and best situation.
You can actually win here if you really want the house!
Where were we???
#7-
Ahhh… The LETTER.
Write the seller a letter & tell them a short story about you and your family … if you have one and are bringing them along, if you don’t have a family… talk about your pets! Have pictures of your pets, of if you must… your kids… kidding… meh…
Tell them what you or they love about the house, neighborhood, schools etc. It can’t hurt and it really can help you in getting picked to go to Round 2
#8-
You can buy the house AS- IS… with no repairs for the seller to do or give you a credit for. You still have the inspection period & if there’s too many glaring issues with the house, you can cancel the contract.
#9-
You can shorten the Close of Escrow. Shorter is better for a seller & shortening closing will help your offer stand out. Again… make sure your Lender can close on time BEFORE you try this! It could end up hurting you if you don’t.
It’s important to use a strong local lender who can close loans quickly! No internet loans for you… they can’t do anything on time!
There’s a few other Ninja secrets that I’m not sharing here. When we work together… you get all of those secret weapons… but not here….
Too many people watching us!
#10-
An escalation clause… It’s an advanced tactic that even a lot of other agents don’t understand… It allows your purchase price to escalate sayyyy… $5,000 over the next highest offer… up to a maximum price which you cap in the escalation clause. This can help you win!
#11-
You have to make a PLAN beforehand. This is your best strategy. Watch this video here… (Point upper Left)
it’s about doing just that… making a PLAN.
P-roper
L-ogistics
A-nd
N-awledge
PLAN!
Because nobody needs a PLAK!
If you have any questions about this, my contact info is below or in my bio. Or go to www.MeetDaryl.com and set up a virtual 15 minute strategy session with me to do just that.
My next video will be:
What the heck is rhubarb?
BE SAFE!
Virtually Yours…
Daryl Palmer Real Real Estatetist
[email protected]
310-502-4240
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