Buying a Home in a Seller’s Market

As San Francisco’s seller’s real estate market continues, buyers must be more prepared than ever and adopt the right mindset as well. The low inventory that has been going on for some time in San Francisco is coupled with a large pool of buyers. Exacerbating this state of affairs is the fact that there are many buyers who come in with offers that are all-cash and have few or no contingencies.

In this market environment it is imperative to work with trustworthy, knowledgeable professionals and to consider the following:

Know your price range and your absolute top offer amount.

Be ready to move as quickly as possible.

A pre-approval from your mortgage professional is essential.

Find out what the seller wants and allow your agent to do the work on this.

Write an offer with as few contingencies as possible.

Make contingency periods as tight and short as possible.

Present your best & highest offer amount vs. hoping for the seller to counter your offer and then going higher.

Come in with a healthy down payment.

Close as quickly as possible.

Consider writing an ‘As-Is’ offer.

Understand that you may be writing several offers.

Maintain the attitude that the perfect property for you is forthcoming.

If you are hoping for a deal or insider information to get you one, that is exceedingly rare in San Francisco and especially in the current market environment. Even fixers, probates, and REOs (bank-owned properties) generate much competition, thereby increasing prices.

Similarly, buyers who wish to procure FHA or VA funding or government subsidies stand almost no chance to get a property in the San Francisco/Bay Area because those types of financing present too many hurdles to sellers. They are also quite labor- and time-intensive for the buyers and all professionals involved. Most of all, they take time and programs can change or entirely go away in a hurry. Most sellers therefore will not even consider them.

©SFRE February 2016

Gabrielle Dahms

Published in Uncategorized

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