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What Our Highly Competitive Market Means for Buyers

What Our Highly Competitive Market Means for Buyers
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As you most likely know, right now we have one of the most competitive real estate markets in U.S. history—definitely the lowest inventory we’ve ever seen. If you’re a buyer, what does this mean for you?

It means you have to be a lot more competitive and aggressive. We’re seeing a lot of buyers remove all of their contingencies (loan, inspection, appraisal, etc.) just to make sure their offers are competitive, in addition to where they need to be price-wise and down payment-wise. For example, we just wrote an offer for a client on a Porter Ranch home that was $100,000 over the list price. We removed the inspection contingency from the offer, but the seller ended up accepting an offer that removed all contingencies. Additionally, the buyer made their initial deposit non-refundable. If they backed out, they would’ve lost that money.

“The buyers who are being very aggressive are the ones who are getting their offers accepted.”

That’s the type of aggressiveness we’re seeing from buyers because inventory is so low and competition is so high (even in higher price points). It’s not uncommon for a lot of listings to have 60 to 125 showings and snag anywhere from 10 to 20 offers over just two days. Knowing this, the buyers who are being very aggressive are the ones who are getting their offers accepted.

If you want to make an offer on a home with a traditional 21-day loan contingency, 17-day appraisal contingency, and/or 17-day inspection contingency, your offer won’t be accepted. A lot of buyers are surprised by the fact that it’s not just the down payment and price that matter in an offer; the terms and conditions matter too. Because of the type of market we’re in, sellers can dictate these things as well.

What about sellers? In the video above, I’m standing in front of a Northridge townhouse that one of our clients was able to sell through our database because the client didn’t want a lot of people walking through her property. We were able to find her a buyer and close for top dollar. If you’re a seller looking to do the same thing, give me a call. There’s an 80% chance my team and I know somebody in our database who’d be willing to buy your house.

If you have any questions about the buying or selling process or the market in general, feel free to reach out to me as well. I’d love to hear from you.

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