Looking back as recent as the beginning of 2013, prospective Carlsbad home buyers rarely had to worry about being outbid when writing an offer to purchase a home. if you’ve been following the San Diego real estate market, you know that since the middle of 2013, there was a quick shift from a buyers market to a sellers market - almost overnight! between 2009 and 2013, anyone brave enough to be writing offers to buy a home at a time when the real estate market was frightening most folks away was not only bold - they were usually alone. Sellers who were forced to move for financial or personal health reasons found themselves forced to accept offers that they knew were well below their property’s true practical value. The one great thing for sellers that weren’t forced to sell is they could then turn around and buy in their new community at the same kind of crazy discount.
That was then, this is now. The San Diego Real Estate market continues to thrive, especially Carlsbad as I pointed out in this blog post. One national survey found that that buyers are acting quickly on the most sought-after homes, and that overall, median Days on Market continue to fall while lack of inventory and low interest rates continue to assist in rising home prices.
As summer approaches. most buyers that have been looking for a while must know by now that when that perfect home comes on the market, they aren’t alone in being excited. It calls for definitive action for home buyers who have a good idea that they must act decisively or miss out. Here are some options for increasing the odds that their offer will be accepted:
- One tactic to prevent being outbid is to add an escalation clause to the offer. If allowed, such a provision states if the seller receives another offer, then the buyers are willing to increase their own offer to a set price. For instance, a home buyer who makes an offer of $310,000 might include an escalation clause in increments of $3,000 should a competing offer appears, up to a maximum of $360,000.
- Since people have different reasons for selling their home, another tactic is to discover what's important to the seller. Perhaps they have a new job opportunity and need to vacate as quickly as possible. Or maybe they have plenty of time, and are holding out for the maximum price. Your agent may have a good idea what is motivating the sellers so that you can craft your offer around their requirements. If a normal schedule calls for an inspection period of 10 days, but the sellers want to move quickly, they may be motivated by a shorter inspection period.
- Usually, home buyers find it prudent to keep the upfront earnest money pledged to a minimum, allowing them more leeway in limiting their loss if they decide to back away from the deal. Increasing the earnest money shows the sellers you are serious about completing the purchase. It also subtly affirms your financial stability. An even more substantial demonstration is to become pre-qualified with a mortgage lender. Unless an all-cash purchase is possible, it’s the best way to guarantee you will be able to act quickly. Even if competitive bidders appear, when you are a pre-qualified buyer, you increase your chances of winning out.
When I’m tapped to act as your buyer’s agent, I become your advance scout and strategic partner as you explore this spring’s exciting Carlsbad real estate market. I hope you’ll give me a call!
Real Estate Agent BRE #01786169
Allison James Estates And Homes