Monday, November 30, 2020 / by Dave Salzman
Get Your Offer on Top of the Pile
So, you have found the “perfect home” and you are writing your offer.
How to get your offer selected above these many others?
But is it critically important for you to take these important preparatory steps BEFORE you write that offer!
Background:
What is driving the appearance of low inventory is the rapid sale of inventory? Homes are getting snapped up in days instead of months and sellers are realizing increased sales prices due to the crush of buyers vying for any one purchase opportunity.
However, it is important to understand that the Number of Properties that go into Active Sales status and the number that go into Under Contract status have both actually INCREASED in Los Angeles County as compared with the same month last year. More homes reached the market, and more went under contract in 9/20 than did in 9/19! There is actually plenty of inventory-it just trades extremely rapidly!
The “flow of home inventory” to the market is strong so this is not the limiting factor in your purchase!
If you would like to know why market conditions are so “inventory limited” in appearance and how, in actuality, that is a buying opportunity, check out our first article in this series: Multiple Offer Madness Understand the Metrics
To our frustrated buyers, we do not recommend waiting, but we encourage patience! These historically low interest rates are not likely to increase for at least several months per the Federal Reserve. Additionally, the confluence of the Millennial 1st time home buyers, Gen X move-up buyers and Boomers “right-sizing” means the buyer pool has exploded. These factors, coupled with the post COVID-19 demand, and low interest rates have created a frenzied race to home ownership.
How to maintain your sanity, still achieve a purchase and not have buyer’s remorse?
The following are our first 5 steps to help you maintain your sanity, find the right home and “Get your offer on top of the pile.”
1. Clearly Identify your “Must Haves” vs “Desires”
Understand and write down the top ten “Must Haves” in a home and location. This is especially important if you are purchasing with a partner/spouse. The very act of making a list (separately at first) and then reviewing and comparing your lists into “Must Haves” vs “Desires” creates clarity and is your touchstone with each property you view. Take your list with you. If the property does not line-up, pass.
2. Research Location
Identify what geographic area that works for you. Apply your “Must Haves” to a city and neighborhood. Start broad with internet research and then dive deeper into the target city. For resources, check the Chamber of Commerce to see how businesses are supported and promoted, the School District to understand locations and scoring, local activities, restaurants, shopping, medical facilities, natural features, access and driving times. If you live far away from your desired destination, take a trip, drive around the neighborhoods, stay for several days or a week.
3. Be “Preapproved” not just “Prequalified” for a Loan
4. Understand your Post Purchase cash budget for renovations
5. Consult a local Realtor
Dave Salzman
The Salzman Team with Engel & Voelker’s LA-South Bay. Dave has been “making deals happen” for over 38 years, is an expert in the South Bay marketplace and backs it up with his own deep understanding of the local area and real estate finance. Dave is backed by a team of 10 dedicated agents looking forward to making our clients’ home buying dreams come true.