Competition Amongst Buyers

In the green corner, a buyer approved at $250,000 w/ a 3.5% down payment and needs a 3% seller credit for closing costs. In the red corner, a buyer approved at $245,000 w/ a 5% down payment and cash for closing costs. Which offer is higher? Assuming a basic offer, the red corner is higher. Huh? A seller credit reduces the proceeds, “bottom line” of the seller. The green corner’s scenario is actually an offer of $242,500.

Why is this important? The Sacramento area real estate market can be quite competitive and deceptive. With all the doom and gloom in the media not many consumers are aware that demand exceeds supply. How this is evident is very simple! Many homes are receiving one, five, ten or more offers each. It is a very basic assessment when you have that many buyers competing over one home. In the example above, that $2,500 could be the difference between your offer getting accepted or not.

With so much competition how do I get my offer accepted? You may only get one chance to submit an offer on the home you want, so make it count. Keep in mind that doesn't necessarily mean going above and beyond the asking price. There are other ways to write an aggressive offer.

Most homes are selling in the first couple of days. In order to have a fighting chance, previewing that home ASAP is a must. If you’re currently looking for a home how long after the home hits the market are you driving out to view it? How many times a week are you out looking? If you are serious about purchasing a home and you want to take advantage of the tax credit and the low interest rates, you need to be out hitting the pavement consistently. Once you find the home you can’t live without, we would review all "sold" comparables so you can make an educated decision on how much you want to offer, then we’d structure the offer accordingly.

I hope this has been helpful.