Making Multiple Offers to Purchase a Home… San Diego Home Buyer Practices
I get this question from my buyer clients a lot. If you haven’t purchased a home in awhile then you are probably not as clued in as far as the new market environment out there in the San Diego Condo and Homes market. Our current market here in San Diego County is dominated by short sales. I would estimate (off the top of my head based on my everyday experience) that at least 50-60% of the current condo and home listings are short sales. People that are selling either are moving out of the area, can’t afford their mortgage OR they are completely upside down and want to cut their losses. In any case, most sellers out there owe more than their home is worth. This huge underlying factor is causing buyers to make numerous offers while waiting out the short sale market. And any buyers agent would encourage them to do so.
Now for many home buyers, making multiple offers feels a little bit shady or dishonest. But here’s the honest truth…. when you make an offer on a property (and let’s say you’re in LOVE with it), you a) have no real guarentee that the short sale will be approved, and if it is at terms that you are okay with; b) have no solid commitment that the seller or listing agent won’t submit other, possibly higher, subsequent offers to the bank essentially squeezing you out and b) don’t know if the seller will change their mind or find some other course of action like a loan modification. It is my experience that a buyer will get the green light to open escrow on as low as 10% and as high as 30% of the homes they make offers on. The only way I would suggest waiting for that one home is if the above 3 variables are discussed with the listing agent at length and point in your favor. Otherwise, I would continue looking and make offers on other properties you would be happy to open escrow on. But, as I’ve said before, do not make an offer on anything you wouldn’t open escrow on and never look back.
Tara Steinke
Residential Sales and Appraisals | Managing Associate at Solant Real Estate Advisors
619-384-6014
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Tara is your San Diego condo and home expert - For buyers and sellers alike, her extensive experience, including work as a professional Real Estate Appraiser in the San Diego area provides a unique perspective in negotiating the best deal for her clients, and gives those looking to buy or sell a San Diego Condo or Home the peace of mind that they will be positioned effectively in today's changing real estate market.
Tara is Licensed by the CA DRE#01426882
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