If you've lost out to multiple offers in the past, don't give up. Learn how to win for the next house, or even the next.
Buying a home in almost any neighborhood in Los Angeles, you can expect multiple offers. We've had them through winter, and are forecasting a continuation through Spring & Summer.
Spring has come early in Santa Monica real estate. With a shortage of inventory, low interest rates, and buyer demand; multiple offers are becoming a common obstacle to overcome. With the right agent, preparation, and flexibility you can win at getting your offer accepted.
If you are searching for a home in Santa Monica, inventory is very tight. Understanding what every $10,000 means is an important discussion to have with your Realtor and Loan Officer ahead of time before you get a counter offer.
To break it down, for example, if you are putting 20% down (and need to increase your offer by $10,000 to win) your deposit will increase $2,000. The remaining $8,000 will be financed over 30 years at 4%. What it translates to is an extra $28 per month for your mortgage payment. Part of that payment is covered by Uncle Sam as a write off of interest on your taxes. At a 35% tax bracket, it will be $18 per month. That is less than a cup of coffee per day.
Most people move every 5 years, after 5 years you will have paid $1,080. Adding it up, the $10,000 increase in an offer is approximately $3,080 over 5 years. (Don't take our word for it, have your Mortgage Professional do the numbers for you)
When searching for a home or condo, needing a specific neighborhood, price range, school district, desired location: How often does a home come on the market with your exact criteria? Can you afford to let it go to another person? Understanding the $10,000 difference to you can mean getting the offer accepted on your dream home vs. letting it go to someone who does know the $10,000 difference.
Understand & ask "What do the Seller’s Want?" Have you ever seen the movie, “What Do Women Want?” The key to having your offer accepted by the seller is to know what they want. If the seller's answer is vague, have your agent run some data for you on recent sales. Also have your agent ask, what price and/or tems do the sellers want? The seller’s could need time to move or find a replacement home, or a few days after closing to move could be what they are looking for.
If you’re the seller, your home has to be priced well and presents well is essential to receiving multiple offers on your home.
Have you ever painted a room or a house? If so, you know 80% of getting the job done well is preparation. Preparation takes time & when done the rest of the project runs smoothly. The same is with buying or selling a home in Santa Monica. 80% of getting an acceptance is your preparation. Offers are a combination of price and terms. In many cases, the seller does not always choose the highest offer.
If you’re considering selling your home in Santa Monica, or any city, meet with you Realtor ask them their marketing plan & pricing strategy. If any work needs to be done to present your home to buyers, that will affect your price. Minor repairs affect buyer’s confidence in your home and can signal major repairs (even though they might not be) What else can maximize your home’s value to a buyer. How’s your curb appeal? Do you need partial staging? Staging? Here's a few ideas to spruce up your home that can be done in a weekend.
The important thing to do is be prepared before your home hits on the open market. Remember, luck is when preparation meets opportunity.
To schedule a free consultation for winning at multiple offers, let's talk!