Stop listening to the national news, it will only guarantee that you will not get the property you want because you will ignore the advice that your agent gives you on your local market. Forget everything you hear on the news about this being a buyer’s market, the Silicon Valley is not like other markets.
In the Silicon Valley it is now a seller’s market for most markets. The seller has their pick of offers and they can cherry pick for the best terms and best price.
Strategies to win the offer
Go in at your best and final price. When sellers get as many offers as they are getting right now there usually will not be counter offers. Do not lose the house you love trying to save a couple of thousand dollars. Do not follow Suze Orman's advice on never paying more than 80% of the list price on a condo. Suze does not know this market; her advice might be sound in another market. If you want the winning offer please read the first sentence of this blog again.
You cannot take more than a week to remove property contingencies, if you even have property contingencies. If the seller has already done the inspections using a reputable inspector you may want to consider not having any other inspections. Review the inspection findings carefully and if you have questions about the findings in the inspections have a qualified contractor review them with you on the property. You may also consider not having an appraisal contingency if you have the cash to cover the difference in the appraised value of the property and purchase price.
Before you even start looking for a property make sure you are pre-qualified for a loan and have proof of funds in the bank. Your offer will be ignored without it.
Be open to properties that need a little love and affection. Anyone can fall in love with a property that has been staged to sell. In this market you will pay a heavy premium for the staged move in ready property. Look for a property with good bones but that needs a little cosmetic updating. Educate yourself about the comparable costs of a kitchen or bathroom refresh.
Paint and new carpet are relatively inexpensive updates and many buyers cannot see past green shag carpeting and orange faux paint. Watch every HGTV episode you can on getting a house ready to sell so you can see how easy it is to update a house with paint, carpet and few strategically placed new door handles.
Last but not least, be ready to look at property the MINUTE it hits the market, if you can only see property on Saturday afternoon from 3 pm to 5 pm you will remain a renter for the foreseeable future.
If you have any questions about other deal winning strategies I use with my clients please feel free to contact me.
Happy House Hunting!