With a supply shortage of existing homes and mortgage rates still near record lows (among other factors), the real estate market remains red hot from the national to the local level. That means prospective buyers must move quickly and aggressively to snap up their dream property, and sellers must be discerning in vetting their offers. Here, some Coast real estate experts tell you how to achieve a great deal:
Susan Siemiontkowski
Realtor, Coldwell Banker Alfonso Realty
- • If you’re searching for a family home, determine the size and most important features. Save valuable time by narrowing down locations and school districts.
- • Expand your search area; the most sought-after neighborhoods come with the highest price tag.
- Create an attractive offer to have the seller agree quickly. However, be prepared for a multiple-offer situation.
- Get pre-approved and have it in writing. A preapproval letter shows you have spoken with a lender, and based on your finances and credit, you’re ready to buy. Depending on the sellers, a quick closing may give you an advantage.
- Search homes under your budget to allow room to bid up. If you only look at homes at the top of your budget, you risk being outbid or going outside your desired price point.
- Consider value versus price. When making an offer, have your Realtor determine a fair-market value range. Lowballing in a seller’s market may cause you to lose your dream home by alienating the sellers.
- Don’t fall in love with just one house. Do what you can to buy the top home on your list, but have a backup if it falls through. Create a point system when viewing homes, and highlight the top three.
- Be prepared to leave a larger deposit. This is not always advised, but it’s a great negotiating tool when you’re up against multiple offers.
Holly Lemoine-Raymond
Broker/owner, HL Raymond Properties
FOR SELLERS:
- Get your property in top shape (fix obvious items and get rid of any clutter). I always tell my clients to present the property the way you would if you were renting it out to a stranger for the week. Curb appeal is very important. You truly only have one shot to impress. Handling a punch list of even a few key items will make all the difference.
- Be prepared. Fill out all property disclosures, and give the agent all important information and documents necessary to help with the sale. The more the agents know about the property, the better.
- Be realistic on pricing. You can tell within the first few days if the pricing is spot on. Buyers absolutely will be there if they see the value.
- Be prepared to move fast and strategize all offers. The most expensive, over-listing-price property may be attractive, but essentially, it may not work out if it doesn’t meet appraisal value. The bottom line: If the buyer is not willing to pay, you have no gain and end up back at square one.
FOR BUYERS:
- It’s tough out there. With multiple offers, high prices and lots of cash buyers, it can be quite competitive. Work with an agent and a lender who knows your needs and timelines. They should be talking and working with you, as well as with each other.
- You always should be pre-approved with a lender before starting your search. This ensures that when you are ready, you can submit your pre-approval letter with your offer. This proves very quickly to the seller that you are a serious and vetted buyer. You will need to be creative in this market to land a sale. Since the market is so competitive, I advise having a backup plan or additional properties in mind.
FOR BOTH BUYERS AND SELLERS:
Do your homework on the property, and get great representation. I also emphasize having fun along the way. Tap into the excitement and joy that often accompany a new chapter or next step.