How to Buy a Home in a Seller's Market in Carlsbad California

 

No doubt you have some sense the Carlsbad real estate market has been getting more competitive for some time. It's true elsewhere as well.

 

So how do you compete as a buyer in the Carlsbad real estate market when prices are creeping up, there are multiple offers on many homes, and time on market for most properties is dropping?

 

Get Pre-Approved

 

We keep saying this but it amazes me how many buyers just don’t do it. If you don’t have a current pre-approval from a reputable lender that has looked at credit scores, assets, debts and income, you are very likely not going to be successful.

 

With many properties you don’t have days to wait to get your pre-approval…other buyers submitting offers already have them.

 

Why in the world do you want to shop for a home when you don’t know (1) how much you can afford, and (2) if you can even get pre-approved (lending guidelines are still tough and not everyone who wants to borrow money can)?

 

Have Your Proof of Funds Ready

 

Whether you are a cash buyer or not, having a proof of your funds (POF) for the down payment and closing costs gives you a competitive edge. It has to be current, and a promise of funds from great Aunt Tilly when it’s time to close won’t cut it.

 

Know What You Want

 

If you haven’t figured it out, you are going to waste valuable time. If you are not sure, that’s fine. No point rushing into buying something when you are not sure. But if you do want to buy, you had better have a good idea of what you want (based on your needs, not a pipe dream) and where you want to live.

 

Make a Clean Offer

 

The more terms and conditions you add to your offer the less competitive it will be. Be prepared to close as quickly as possible. And chances are you will have a tough time getting closing costs covered. Consider a strong deposit with your offer, too. Standard practice varies but in my area 1 – 3% works well.

 

Don’t Lowball

 

It’s a little hard to say how LOW a low ball offer is, but given where many homes are selling (sales prices versus asking price), in general you can expect, based on recent averages in Carlsbad, to pay 97% of the asking price, and many homes are selling at asking and above. There are, of course, exceptions – short sales, REOS and resales in poor condition or tough location issues such as major roads, train tracks, the freeway and mixed use areas. And homes that have been sitting on the market may offer more opportunity to bid lower.

 

Work with a Knowledgeable REALTOR

 

You need to be working with someone who knows the local market conditions, what’s selling and not, and who knows how to strategize an effective offer and can negotiate well.

 

Can you go it alone and go directly to the listing agent? Sure, if you want. But will you get the best price? No. And does that person care about your interests versus the sellers? Likely not.

 

Do Your Due Diligence

 

Get to know the areas you are interested in as well as possible. Spend time in the neighborhood. Check out the schools if they are important to you. Figure out the commuting routes, and access to amenities you want and need.

 

Be Prepared to Make Your Decision Quickly

 

If you need to think about it for a day or two you may lose out. The day you see the right property is probably offer day. When you snooze you lose. Be of the mind set that you HAVE to move quickly. And be prepared to lose a home if you can't or simply aren't ready.

 

Any other ideas to share?

 

 

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ALL ABOUT THE CALIFORNIA RELOCATION DUDE

 

If I can provide more information about Carlsbad homes and real estate for sale and surrounding areas, the housing market in general (or locally), or otherwise assist you, friends or family in a home search or sale, please contact my mobile office or text me at (760) 840-1360 or email me at JeffDowlerSolutions@gmail.com

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