Elizabeth;

You deserve a round of applause ---- here in San Diego, we are experiencing the challenge that you are experiencing with entry level buyers. The entry level market is selling-----and along with the multiple offers that they are receiving, we see the price creeping up in this price point.  What is disappointing is the buyers that you are working with that get their hopes up.

Hi Lorraine and Loretta: The entry-level market in Sacramento is mostly saturated with REOs and short sales. Banks are wising up, though, and pricing inventory way below market value, which then draws multiple offers. I tell my buyers not to place a lot of emphasis on the list price but instead look at how many offers the bank has received and pay close attention to the comparable sales. I also pull up the listing agent's last three month's of sold properties -- especially if that listing agent is an REO specialist. This typically will show patterns, including list-price to sales-price ratios, which gives me a pretty good idea just how high we need to go to get an acceptance.

The buyers who think they can "steal" a home and offer 20% less than the bank's asking price are those who continually lose out. But Doug and Shereen are offering way above list and still losing out to conventional buyers -- and they can't go any higher than their maximum comfort level, nor would I ask them to. If we changed any one of their parameters, they'd have an easier time of it, but they really can't change anything. I am confident, though, that their persistence will pay off. I gotta hand it to them. They're hanging in there, so they will eventually get a home. I hope that it's this 10th offer. I'm keeping my fingers crossed at this point.

Thanks for the note, and good luck in San Diego!

Elizabeth:

I love working with first time home buyers. Its so rewarding to see the excitement in their eyes and to know that you helped them achieve one of their dreams. Its also disappointing when you have to tell them they did not get for whatever reason the house of their dreams. You just hope that they can regroup and start looking again.

I hope your first time home buyers get a home soon.

Me, three, Jill. At least they are keeping their sense of humor about it, though. They asked if it would help if they perched themselves at a busy intersection holding up a hand-made cardboard sign that read: Will Work For House.

Elizabeth, your story is amazing to me and I applaud your effort in working with the couple. Wow, ten offers. In our area, with the high affordability and the 50,000 homes listed they could be in a home tomorrow. What a difference an area of the country makes.

Hi Gary: All the homes these buyers want are either short sales or REOs because they are looking in a highly desirable neighborhood where homes sold for $400,000 several years ago. These properties are now listed in the low $200K's, so there is extreme demand. Plus, they are under-priced from the comparable sales. It's like going into combat to buy a home. I tell buyers to fasten their seat belts as it's going to be a bumpy ride.

Ten offers...wow.  That would be a world record for me.  You have a lot of commitment to this couple.  They are lucky to have you as a realtor.

Some buyers you instinctively go that extra mile for because they deserve your help. And gosh, this couple does. We are now on offer #11.

The listing agent of the last offer told me they were one of two offers that were not thrown out by the bank. Then, yesterday, she changed her tune to say it probably wasn't their offer at all that was being considered . . . she must have mixed me up with somebody else . . . but who knows what the bank might say . . . and what was her own name again?