‘s tough out there! I can’t remember the last time it was so difficult helping buyers battle it out in the metro San Diego real estate market. If it’s any consolation, the agents I’ve recently spoken with, who have been in the business for twenty plus years, are all in agreement that they’ve never seen such a difficult time to put deals together. Mandate Letter For Sale Of Property One of the big reasons that it’s become so challenging is the lack of inventory, especially when looking at homes under $300K in the San Diego metro area. Inventory is at an all time low, which quickly becomes evident when you’re consistently told you’re competing against 15 to 20 other offers. And the majority of those offers are cash…
Although it can at times seem like you’re fighting an uphill battle, there are several things that can be done to increase your odds of putting your offer in serious contention to be accepted.
Base your offer on recent comparable sales (closed) regardless of the list price. If you feel like your offer is strong because it’s $30K over the list price yet still significantly below the most recent closed comparable sales, you need to rethink your current strategy. On the same token, it’s pointless to submit an offer that is clearly out of line with recent comps as you’ll run into an appraisal issue that could result in the bank (being that you dealing primarily with REO’s) requiring you make up the appraisal shortcoming via a larger downpayment.
Allow the Seller to select all services (title, escrow, etc.) and eliminate (or at least minimize) the request for any Seller concessions (closing costs, home warranty, etc.).
Tighten up your contingency removal periods as much as you possibly can without being unrealistic. For example, instead of taking the typical 17 days, opt for an inspection and appraisal contingency removal period of 7 days.
The fact remains that you’re up against cash buyers and “cash is king” seems to be the mantra being chanted by most bank’s asset managers. Although the Homeowner Tips above tips may not outposition a comparable cash offer, they will, undoubtedly, make your offer more competitive. Best of luck and hang in there!