Welcome to Our Daily Blog Posts!
I am a local Realtor helping buyers and sellers in the Bay Area since 2010. You can find more information about myself on my Zillow Page.
This year in 2021 I have brought on an assistant, Jessica, to help our client’s reach all of their Real Estate goals!
We will be updating our blog with useful and funny content Real Estate related. Want to know how the market is doing and if it’s the right time to buy and sell? Give us a call at 408-840-3852 or [email protected]
Let’s get into today’s topic, how do we compete as a home buyer in a hot fire seller’s market, does it requiring sacrificing your firstborn? Real Estate in the Silicon Valley is serious business, let’s get down to it!
1. Work with a trusted Realtor.
Why is this so important? As a buyer you’ll find that once it gets to negotiating not only are the price and the terms important, the relationship your Realtor has with the Listing Agent is just as important. If the Listing Agent believes that your buyer will close the transaction based on our reputation, that adds to the strength of your offer. At the end of the day of a deal does not close buyer and seller are not happy and nobody get’s paid.
A Realtor that does consistent business in the Bay Area is also important as that provides real time data to you the buyer on how the market is performing and what prices are doing. Most buyers are looking on estimates on consumer websites such as Redfin and Zillow. The problem with this data is that it is a minimum of 30 days late as that is how long a home takes to close in the Silicon Valley.
2. Get Pre Approved.
The last thing we want is to start seeing homes, fall in love, and then find out that it does not work for our budget. We also do not know how far away we are from each lenders guidelines for better rates.
Figuring out your pre approval prior to offering gives you time to compare rates and see who can do better for you. During a 30 day period your credit score will not drop much as long it’s getting pulled for the same reason like a mortgage application. If you pull your credit for a mortgage, a car, and a tv then yes it’s a big drop.
Once you are ready to decide on a lender understand it’s not just the rate. Working with a lender that does business and knows Realtors will also give you an edge as the lender is the most important to closing a transaction. We will always have our lender give the Listing Agent a call to let them know how strong we are as buyers and that we will be on top of everything to close on time.
3. Do Your Research.
After we’ve gotten Pre Approved it’s time to start seeing homes and understanding neighborhoods. What is it exactly that you are looking for in your home in terms of size, remodels, location, schools, and price. I will be understanding what you are looking for and will suggest areas and neighborhoods that meets as many needs as able.
Once we find a home that we like we will look at Disclosures that tell us about the home such as remodels done and also Inspections. The three major inspections are Property, Pest, and Roof and these will let us know what we are walking into. I will guide you through these documents together.
If everything still sounds good after that we will take a look at what comparable homes are selling at to come up with a winning strategy.
4. Understanding Your Competition.
To win in a seller’s market we need a winning strategy. This comes down to having good communication with the Listing Agent to find out what the seller’s are looking for and what is important to them. We will also find out how showing traffic has been, how many people have looked at documents, and how many offers they may be expecting. This information will give us a complete picture of what is going on and how competitive it will be.
Look out for our next post coming soon and thanks for stopping by!
– Thomas Feng