With so much in the news about the real estate market, we’re hearing from you, our smart and savvy California Listings readers, that there are some big questions that remain. So, we’re turning to our neighborhood agent partners to answer your burning real estate questions in our new weekly feature—Ask The Expert!
This week, El Sereno expert Brian Larsen looks at what’s ahead:
Question: I’m a first-time buyer and feeling a bit overwhelmed by the competitive market. What’s your best piece of advice?
Brian Larsen: Buyers need to be well prepared so their agent is well situated to negotiate a strong offer on their behalf. This means a pre-approval letter—not a pre-qual letter—from a local lender that is easily reachable. The seller’s agent will ask if your agent has worked with and can vouch for your lender.
Including contingencies in your offer and the length need to be carefully considered. Your agent should call the seller’s agent to find out what the seller wants to see in an offer. Maybe the seller insists on keeping their new refrigerator and washer/dryer or they need a shorter/longer escrow period. Buyer’s often ask where the other offers are at, but in a multiple offer counter situation, no one knows where the offers will come in at.
All this being said, it is a very competitive market and only one person will get each home. In the past 18 transactions where I represented the buyer, 16 of those buyers got their first offer on a home accepted. One of my buyers made three offers, while I showed another buyer 27 homes before one of their offers was finally accepted.
My advice is to not give up. Buy whatever you can afford now and let the equity you will build add to your financial portfolio allowing you to buy your dream home later. If a home you like sells to someone else for $5,000 more than you offered, move on knowing you did all you could. That home simply wasn’t meant to be.
Click here to connect with Brian Larsen and see more of his listings at his California Listings profile.
To submit a question for an upcoming Ask The Expert feature, drop us an e-mail at hello@californialistings.com