It's not news that San Diego is in the midst of the most competitive real estate market of this decade. The housing supply is vastly outnumbered by the demand and prices continue to rise. Despite the median price growth slowing from 6.3% to 4% in San Diego (as reported by Bloomberg), the market is still hot.
What does all of this mean for buyers? If you have placed an offer on a home, you have likely been one of many. Multiple offers and bidding wars have become the norm. Though it's tough to argue against cash being king, and the highest offer winning, sellers can be drawn to an offer by other terms as well.
Considering the following tips when putting together an offer:
Demonstrate your commitment to the seller by increasing the amount of cash you are putting towards your down payment or by increasing your earnest money deposit.
Present a clean offer that doesn’t request additional demands of the seller, such as paying closing costs. If the seller wants a quick close, shorten your contingency periods. Or, if the seller is not ready to move, offer a lease-back option or extend the escrow period.
Try to get to know the seller and make a connection by appealing to the seller’s emotions. Many agents suggest writing a letter, however don’t hold back in the creativity department. Get your kids involved and include notes or drawings from them illustrating their excitement over the home.
Has the seller expressed the property is a fixer? Include plans for a remodel that highlight how you will keep the original integrity of the property giving it some TLC.
Pay attention when viewing the home – if you and the owners share the same love for a sports team, book, designer, etc. creatively reference it in your note. For example, if you share a mutual obsession with the owners for Restoration Hardware, include an online coupon code or details for an upcoming sale in your letter.
Always keep in mind that most sellers are very sentimental when it comes to their homes - so don't underestimate the power of pulling at the heart strings!