CALIFORNIA HOMEBUYER: 5 TIPS YOU MUST FOLLOW TO GET SELLERS’ ATTENTION

FAST FACTS: MARCH REAL ESTATE REPORTS

March 2013 recorded the highest increase in home sales, a stunning 28.2% climb from March 2012.  The median price in February was $ 333,380; in March, the median price recorded at $378,960.  With these figures, the California Association of Realtors reports that the median home price has hit its highest levels, since March 2008.  At the same time, C.A.R. says that the supply of available homes fell significantly in March. 

CURRENT TRENDS

With housing inventory shrinking but still with a huge demand from homebuyers, we all know what this means:  price increase!  Law of supply and demand, eh?  Weekend open houses are seeing huge traffic - much like the traffic we see at the 405 freeway!  Sellers are getting multiple offers and when they do, they have the upper hand in the game.

SO, IF YOU ARE HOMEBUYER, WHAT DO YOU NEED TO DO IN ORDER TO GET A SELLER’S ATTENTION AND GET YOUR OFFER ACCEPTED?

I hear you.  It is frustrating to put offer after offer and get turned down by the listing agent & seller.  Look at the previous offers you have submitted. Do you spot common offer terms and conditions?  List them down, and then ask yourself, ‘ what can I do to improve my chances of offer acceptance?” 

Here are my 5 tips for you:

 1) Charge up your offer!  Low ball offers no longer work, and offers that are not within sellers’ list price get eliminated immediately.  Gone are the days when a buyer can negotiate for less than the list price and get some closing costs back from the seller.  Hot areas like Burbank and Torrance, sellers say, ‘ present offers only which are from my list price and up.’ If you offered even for a thousand dollar less, your offer will not land the seller’s table.  So long, counter offer.

2) A shorter contingency period works.  Instead of a 17 day home inspection period, write 7 or 10 days.  By doing so, you are showing the seller that you will quickly move and schedule inspections the next day after escrow opens.  Sellers prefer a shorter home inspection contingency.  Why?  So that in the event that you cancel due to issues arising from repairs that seller will not do, the seller can, then move on to the next buyer and not lose precious time.

3) Offer a negotiable closing date. While it is true that majority of sellers want a shorter closing period (30 days or less), some sellers are move up buyers, too, and the sale of the listed property is contingent upon them finding a replacement home.  If this is the case, communicate early on that you are flexible with closing, should they need extra time to close escrow. 

4) A short, personal note to the seller works wonders.  Tell the seller why you love her house!  I have encountered some homeowners who would not sell to investors.  They would only sell to buyers who will occupy the home- to those who demonstrate genuine affection & interest in the property.  And if your letter speaks to her heart, bingo!  Your offer will occupy a spot.

5) Visualize, visualize!  As you continue to haunt for that dream home – hold the image of your house in your mind.  Walk the floors, cook in the kitchen.  Lounge in the patio.  Be in this imaginary state and while at it, feel truly grateful in advance J

Incorporate these tips in your offers and you will boost your chances of getting picked.  In a seller’s market, getting a counter offer, if not a straight acceptance, makes a whole lot of difference.  Sellers do not want go arounds.   But if you do get a counter offer, it is a good indication that seller is willing to negotiate.  Make the best of the opportunity and be reasonable in your terms, if you so decide to present another counter offer.