How to Buy a Home in a Tight Real Estate Market
I've been working with buyers in Novato, CA. Their top budget is around $530,000. We've made a number of offers on homes listed at just under $500k, and usually offering up to $20k over asking. No Luck. These homes all look great. And every time we're told multiple offers or an all cash offer considerably higher beat us out.
Now a little history. I had a client who bought a similar 3 bedroom home in a slightly nicer area of Novato a year and a half ago. Asking price was $445k. We made the offer at asking and it was accepted. Homes in that same area are now selling for $550k to $600k.
Now back to my current buyers. We needed a different strategy. She really wants a nice home, and wants to stay in Novato for the schools for the children. The husband is a contractor, a good one! We had looked at one home that fit all the basic criteria, even had a great layout. But it didn't sparkle. The hardwood was a little worn, the kitchen out of date, the baths kind of plain. The paint was OK but a repaint would be necessary. And it was still on market.
The contractor husband said he could have that house looking like new in a few months. We made an offer at asking price, which was $40k less than they had been offering on other homes. The offer was accepted!
Just imagine how great this home is going to look in a few months. Its value will go up considerably. And with the husband's skills it will probably cost far less than $40,000!
That's how you Buy a Home in a Tight Real Estate Market.
John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area