47 offers …When I think of 47 offers, I think of a designer purse on e-Bay.com that was placed "auction style" for a $1 and it caught the attention of several interested parties, women excited and eager to catch a good deal hover over their laptop anxiously waiting to see if they’ll be outbid. Well in this case, we are not talking about eBay; we are talking about real estate in Chula Vista. I recently had the incredible experience of being in a bidding war on a house in Otay Ranch. Well, actually it was a bidding war but my buyers and I weren’t part of it, everyone else was. The home had five bedrooms, three baths and was in a hot part of town at the right time. When I first met my clients there at a Sunday open house, I knew we were in for a challenge. There must have been 100 people walking in and out of the home for that hour that I was there. It was incredible. We’ll get back to this adventure; first let’s talk about this hot market!
First, let’s look into what’s causing the market to be so darn hot and explosive. There aren’t any houses for sale! Well there are a few but inventory is at a 13 year low in San Diego which means that there is a housing shortage. Far more eager buyers exist than there are willing sellers. Prices are skyrocketing and sellers for the most part are getting their price every time. The feds bringing down interest rates to historic lows has a huge part in this real estate story. With rates being so low, a buyer’s monthly payment is in many cases is lower than the area rent. Which person rather rent than own if their rent is at market rent or lower? Any takers? Back to the inventory- San Diego in general has a healthy share of supply and demand; typically we are stocked with a six-month supply of inventory. Right now, it seems that in South Bay the inventory is around two weeks which makes it a nightmare for potential buyers looking to find a home for their family.
Over these past three months, I have seen more discouraged buyers than in the past 10 years combined. They seem to be finished with the buying process and all the stress that comes with it. I typically have a couple of buyers a week come in to my office and tell me they have been search from six to 12 months with no success. I believe them, the National Association of Realtors say that on average it takes someone 12 weeks to find a home. I think it’s taking buyers in South Bay more like 24 weeks. Many complain about being out bid by higher offers, stronger terms and better financing.
One thing that separates this hot market from the 2006 hot market are the cash investors buying property. Who hasn’t heard of cash buyers purchasing real estate? It seems like a dumb question but these new type of cash buyers are different, way different from 2006 cash buyers.
Generally cash buyers tend to purchase properties at discounted prices and a seller has the choice to make of going with a high financed offer or a lower cash offer. That seems to be the way that most cash buyers seemed to function. Nowadays, it has changed! I have seen countless cash buyers in the last 6 months outbid first time buyers which at first I didn’t believe and it didn’t make sense to me. It blew my mind and defied logic. Once I found out their true purpose, I understood it but still it’s a gamble on their part but better than having their money in the bank. They basically figure they can rent the property and resell in the future. They’re after their 5%-8% return. Apparently they can do that with residential real estate.
Now I am sharing these secrets with you and everyone that needs them! I have created this free special report entitled “8 Ways to Beat Multiple Offers While Paying Less,” to help buyers in this market achieve their goal and get their offer accepted without having to pay the most amount of money. To order this free special report, call toll-free (800) 296-4947 and enter ID 5553. You can call any time, 24 hours a day, and seven days a week.
Get your free special report now to learn how you can really beat out all other buyers without paying the most amount of money and with the least amount of hassle.
To schedule a free consultation, call (619) 300-9675.