Buying and Selling in a Competitive Market

Gabe Carrillo
Published on April 5, 2016

Buying and Selling in a Competitive Market

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In many areas of the country, the housing market is growing and its strength has lead to a competitive market for buyers and an easier market for home owners looking to sell. Below are some top tips for those looking to enter the housing market and also for those looking to sell in today’s competitive market.

Seller Tip: Know your property well and be honest with potential buyers

SELLERS: you are definitely in a position of strength in today’s market, but you don’t want to lose a potential buyer and a great deal after negotiations fail, and then have to re-introduce your property to the market again. This is wasted time for you and your agent. Instead, make sure you know all the details and potential pitfalls of your property and be honest with potential buyers.(A HOME INSPECTION before placing your home on the MLS is highly recommended) Buyers are much more forgiving of a property’s faults if they know about them before entering negotiations. Withholding information could kill your deal later. Something else to consider is that buyers are much more accepting of faults if they are entering a competitive market. So be prepared to disclose all that you can and explain as much as you can about your property.

Buyer Tip: Be ready to make the OFFER!!

Be alert to property listings and ready to schedule a viewing as soon as something interesting comes up.Temecula Ca. is a hot market, so If you’ve been searching for any length of time you probably already know that there will be lots of buyers looking for the same property as you. When a great house is listed on Tuesday it may be off the market by the weekend. Serious buyers are ready to make an offer and close a deal quickly. Are you ready? Do your homework by studying all the listings your realtor sends your way and ask your realtor to verify if the price that is being asked is on the high side, the low side or right where it should be based on the comparable sales in the neighborhood.

Seller Tip: Have a system for receiving offers and reap the rewards

There is no golden rule on whether to accept the first offer you receive or to leave your property on the market waiting for a more attractive offer. It depends on the time of year, the town, the state and other factors that your real estate agent will be able to discuss with you, and help you come up with a plan. In some areas it can be a great idea to jump on the first good offer you receive, whereas in other areas, it is best to wait and have more showings before reviewing all the offers you have received at once. Out here in Riverside County, specifically Temecula , Murrieta and Menifee CA., we have been seeing multiple offers on well showcased homes since late March. As we head into the summer this type of activity will definitely increase making it a good idea as a seller to gather a few offers and send out a multiple counter offer so that you allow the party that wants it the most to increase their initial offer. This strategy can net you an extra $5,000 – $10,000 over your initial asking price.

 Sellers Market—BUYER TIP: Buying your dream home may not be easy

It’s extremely rare for a buyer to close a deal on the first property they like and make an offer on especially in a seller market. The process takes time and with lots of competition you can easily lose out on a property if you don’t act fast or your offer is too low for the seller to accept. I’ve noticed that the type of financing you have will in many cases determine whether or not your offer gets accepted. Cash offers are more attractive than financed ones, Conventional loans are preferred over FHA and FHA over VA. However, this is not set in stone because sometimes a seller will choose their buyer because of an emotional connection that they had with the buyer. HERES THE TIP: If you miss out on a home, it’s important to stay hungry and keep driven to find the right property next time. Many houses will come and go, so don’t get discouraged!  First time buyers are often inexperienced, every home you see and every offer you make is helping you learn more about the market and become more comfortable with how the whole process works. Missing out on a property is not always a bad experience, as the home you thought was perfect a month ago does not seem half as suitable as the property you find a month down the line. Lastly, the less you ask for as a buyer the better your chances will be in acquiring the home you desire. Example: If you make a $350,000 offer and ask for $10,000 in closing costs and you also make your offer contingent on your primary residence selling. Your offer won’t be as attractive as an offer that comes in for $345,000 straight up. No contingencies and no closing costs required.

SELLER TIP: Study the competition and know your market well

A seller should know the market before they put their home up for sale. A good realtor will keep you in the know and do the research for you but its always a good idea to spend a few weeks studying the other properties for sale in the area, even scope out the competing houses by arranging a few viewings with your agent before putting your home on the market. This will  give you the confidence you need to LIST it at a perfect price in order to attract the most buyers. Once you are ready to sell, know your competition and how to price your property to receive the most attention from buyers then your agent can showcase it using professional photos, videos, drone footage and 3D virtual reality walkthroughs so that every person searching your home on the web can see exactly what your homes layout is.  Every property is different, although the house for sale down the street may have a brand new bathroom and kitchen, you can price your property as an attractive alternative with great value for buyers that want to do their own home improvements. Well priced homes attract the attention of buyers and lead to faster sales and multiple offers which boosts prices. HERES the MAIN TIP: price your home correctly the 1st time and get your home sold for top dollar. Trying to get top dollar by pricing it high will get you very little foot traffic into your home and will have the opposite desired effect.  WHY?  Because no one wants to overpay for anything. Its just human nature.

Buyers and Sellers Tip: Preparation and staying alert

The housing market can be stressful for both buyers and sellers. In a competitive market, things can move along very quickly and both sides of the market need to be attentive if they want to successfully buy or sell a property. Sellers have the upper hand as they can put in weeks of preparation before entering the market, something sellers should definitely make use of to maximize their success. Buyers have to be on their toes and ready to react to listings and be prepared to make an offer and move as soon as they find the right property. A competitive market is fast moving and can be very exciting for both buyers and sellers, so try to enjoy the ride. I like to ease my buyers anxiety and improve their experience by saying “If it is meant for you, it will be there for you. If its not then it is not” Can we really cause something to happen that was not meant to happen? I think not, but as long as you are in the game, you can still win and either Sell your home for what you wanted or Buy the home that you wanted.I’m Gabe the House Guy and I’d Love to be your Realtor!!

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Buying and Selling in a Competitive Market
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