Summer itself may be a month away, but the summer real estate rush is already here!

Homes are selling quickly at all price points. We’re seeing multiple offers and homes being purchased before they even hit the market! It’s so frustrating for today’s buyers, but what can you do?

You can wait until home prices go down, but you’ll be waiting a very long time, or you can wait for the summer rush to be over so there are less buyers in the market, or you can utilize these points and perhaps win the bidding war!  At the very least you’ll know you gave it your best shot.

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There are two primary areas to focus on: the purchase offer and the supporting documents that accompany the offer.

The most important factor is the offer itself. It’s not as simple as looking at the past sales anymore. Sure they are factored in, but remember, if you are looking back three months, that was a different time and market. Homes are typically priced 10 percent higher during the summer because the sellers know there is a lack of inventory and it’s the busiest time in real estate.

So how do you decide what to offer? I recommend going in at the very minimum at list price. Don’t worry, appraisers take into account the different time of year it is as well and make adjustments accordingly. If the home doesn’t appraise, then it simply opens up the opportunity for new negotiations with both parties. The buyer and seller normally will meet each other halfway, or at least that’s what you hope for. The buyer will bring in additional money, and the seller will lower their list price.

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If you know there are multiple offers but you’re at your loan limit, don’t despair — there is another option. In Santa Clarita, the seller pays for 95 percent of the fees, so why not offer to pay for some of those fees yourself? Ultimately it is money in the seller’s pocket, and that’s what it’s all about. If the buyer pays for their own home warranty, that can save a seller several hundreds of dollars, or if they pay their own escrow fees, again that will save the sellers money.

An additional option if you are unable to submit an over asking offer is to remove or shorten some of the contingencies. A buyer has 17 days for their appraisal and inspection contingency and 21 days for their loan contingency. So why not shorten that contingency period to 14 days instead of 17, or remove a contingency all together? Before reducing any time frames, confirm with your lender that they can comply with the new timeframe. There isn’t a seller around who wouldn’t appreciate that.

When you do find the perfect home and are ready to submit an offer, you’ll need to accompany that offer with a pre-approval letter from your lender along with verification of funds showing you have the money for the deposit and closing costs.

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I recommend taking it a couple steps further… Consider including the first page of your credit report showcasing your excellent credit scores and writing a letter to the seller. Buying and selling real estate is an emotional time for both parties, and that’s why I believe letters make such a difference. When you think about it, who wouldn’t want to receive a letter stating how beautiful their home is and why the buyer has fallen in love with it? Give it a try and thank me later.

Lastly, this is something for your agent to do. Make sure the purchase offer is filled out completely. When the seller’s agent receives an offer and it’s not filled out completely, the confidence level in the agent and the offer is drastically reduced. In addition to a properly executed contract, your agent should call the listing agent not only to establish a relationship with them, but you would be surprised at what you can learn about the listing itself from speaking with the listing agent.

It’s tough out there right now, but with perseverance and these tips you are sure to get the home of your dreams.

About Tracey Hampson and Tracey’s Real Estate Tips:

I have had the pleasure of living and working as a realtor in Santa Clarita and the surrounding areas for more than 14 years and I love sharing real estate tips with others. Throughout my Santa Clarita real estate career I have had the privilege of assisting buyers and sellers of Santa Clarita homes with their individual real estate needs. I’m here for you as well.

I hope you enjoyed my real estate tip of the month and if you have any questions, concerns, wants or needs regarding real estate please don’t hesitate to contact me. I’m here to help.

Tracey Hampson
Century 21 Troop Real Estate
License 01429142
(661) 993-6124
[email protected]