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Can Buyers in a Sellers' Market Succeed?

By
Real Estate Agent with Compass CA DRE# 01215160

Can buyers succeed in a market that strongly favors sellers?

Here's a tale of 3 of my recent buyers and how they are faring in today’s market which continues to favor sellers.

Happy buyers(Happy buyers, Belmont, 2015)

 

 Buyer #1 – Success! Closed escrow in April 2016

  •        Bought a condo in Redwood Shores – made 3 offers before one was accepted
  •        List Price: $699,000
  •        Days on market: 7
  •        Multiple offers
  •   Every contingency waived, including appraisal & financing
  •        Gave seller approximately 6 week free rent back
  •        Sold for almost 17.5% over asking

 

Buyer #2 – Success! Pending sale, set to close June 9

  •        Bought a 3 bedroom, 2 bath home in San Jose, not in their preferred Sunnyvale
  •        Their 4th offer succeeded
  •        List Price: $1,248,000
  •        Days on market: 11
  •        Multiple offers; Waived every contingency
  •        Gave sellers 30-day free rent back
  •        Sold for approximately 16% over asking

 

Buyer #3 – made 5th offer today; waiting to hear now

  •        Entry-level single-family home in San Mateo, 2-bedrooms, 1 bath
  •        Days on Market: 7
  •        7-10 offers expected; my buyers have waived every contingency
  •        Their offer: roughly 15% over asking
  •        Waiting to hear; waiting is hard. Will they be successful today?

Buying a home in a market that favors sellers is not for the faint of heart, but with perseverance, success will result!

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Good morning, Lottie --- you have provided buyers looking in your area a heavy dose of a realty reality check.   Some buyers understand the situaton quickly, others learn after some missed opportunities while there are some who never quite get it.   It's difficult but not impossible to succeed in an extreme sellers' market.   

Jun 06, 2016 01:27 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Hi Lottie, I really enjoyed your examples. We are in the business of making deals happen and you do so in a hard market and give us motivation.

Jun 06, 2016 01:42 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Wow, it's been almost a decade since we've seen a sellers market here.  We still are flooded with inventory and there is no sign of it changing soon.

Jun 06, 2016 02:39 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Michael Jacobs - I think the moral of this tale is that buyers need to have fortitude and be willing to take risks to succeed in our sellers' market.  It's unpredictable just where prices will end up.

Hello Noah Seidenberg - figures, stats, charts all help educate our buyers; tales like these often help them "get it."

Hi Tammy Lankford, - wouldn't it be wonderful for all if we had a more balanced market? 

 

Jun 06, 2016 05:19 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Lottie Kendall -  The numbers don't lie 16%  to 17.5% over asking are numbers buyers can work with if they are working with an agent like yourself that understand the market conditions!  Excellent post for buyers!

Jun 06, 2016 06:29 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Even knowing the numbers, Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com can leave a buyer out of luck--numbers change! But--one needs to start somewhere, and the number is a good place.

Jun 06, 2016 08:10 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lottie big difference from the market where you are and here in CT.  Waiving all contingencies would be unheard of around here, even in a Sellers Market.

Jun 06, 2016 08:29 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

The only saving grace is that sellers generally get pest and home inspections, as well as others that might be advisable up front, so buyers at least have that information before submitting an offer. If we don't have a complete package, buyers definitely need to have a contingency built in. 

Waiving financing and appraisal contingencies can be very stressful to buyers; we have many conversation about what happens if a property doesn't appraise.

Wishing for a return to a more balanced market, George Souto 

Jun 06, 2016 12:46 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

You obviously know every trick in the book, Lottie, to help your buyers succeed when buying a home in that HOT San Francisco market right now. Wow, it is so brutal, only the strong and the smart survive. We have a similar thing going on in Sacramento, except, of course, our prices are not nearly that astronomical.

Jun 07, 2016 01:29 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

No matter the price point, buyers must have fortitude in our markets today, Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents 

Jun 07, 2016 01:41 AM