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Buying a home right now in California is a competitive affair. And this is especially true in Southern California, where new listings are few and far between.
There is a seller’s market in San Diego, and buyers feel the squeeze. The moment a new property hits the market, buyers engage in ruthless bidding wars to win the deal. And who can blame them? Sunny San Diego has it all.
Getting an advantage in this red hot market is no easy feat, but there are ways you can make your offer stand out versus other buyers. That is why the team at Prevu Real Estate devised a guide on how to get your offer accepted in the tight San Diego real estate market.
Decide on your budget
Having a budget ready sets the foundation for your entire home search.
Laying out your income and expenses will help you figure out how much you can put aside to save for a down payment, closing costs, and future mortgage payments. Your dream of owning a South Park home can fall to pieces if you find out that you can cover the down payment, but the closing costs are out of reach.
Yet you can realistically size up potential monthly mortgage expenses and down payment amounts by getting pre-approved by a lender. By laying out a budget before searching, you give yourself peace of mind in your search.
Be over-prepared with a fully underwritten pre-approval
It is no secret that sellers want a speedy transaction.
Like you, they are looking for a home as well, and the longer it takes sellers to close means less time to find a new abode. That is why buyers should pursue the most comprehensive pre-approval from their lender called a fully underwritten pre-approval to show sellers they can move quickly.
A full underwritten pre-approval takes more time to achieve from your lender than a pre-qualification or a standard pre-approval letter. The reason for this is that the mortgage company completes the majority of the underwriting process in advance. The extra upfront time is worth it though, as sellers will know you can close faster than a buyer with standard pre-approval who would still need to go through underwriting after the deal is under agreement.
While you are going through the pre-approval process, you can use the waiting time to get ahead of finding a buyer’s agent to work with.
Find a local expert to bolster your search
You may know the streets of Mission Hills, but do you know how much homes in that area sell for? Even if you scroll through online listings just for fun, you lack the detailed data that is available on recent sales.
That is why you should seek out and interview several San Diego buyer’s agents. These experts can inform you of local trends, help find and schedule property tours, and negotiate with listing agents on your behalf. Your realtor can educate you on the steps of the home buying process, explaining escrow fees, appraisals, and inspections.
Many people end up working with the first real estate agent they meet, but you should interview several before making a decision. Ask about their deal experience, negotiation strategies, and if they offer commission rebates after you close on a Carlsbad home.
Secure a commission rebate to boost your purchasing power
There is no denying that cash is king when buying a home. But not all buyers have the cash reserves to bump up their offer.
That does not mean you can’t improve your buying power though. Buyers that work with brokerages that provide commission rebates can make higher bids more confidently knowing they stand to receive a portion of the broker’s commission after closing.
Traditionally, brokers split a 6% broker commission when a real estate transaction closes. But advancements in real estate tech enable buyer-focused brokerages like Prevu Real Estate to give up to two-thirds of their buyer’s agent commission back to new homeowners when they get the keys to their property.
Get crafty with contingencies
After preparing for months and partnering with a buyer’s agent, you are finally ready to make an offer on the luxury Gaslamp Quarter condo of your dreams.
But in this tight market, others are eying that prime real estate overlooking the Embarcadero Marina Park. That is why some buyers consider waiving contingencies around home inspections or appraisals to make your offer stand out. Anything that can speed a sale helps, and sellers will likely choose an offer with no contingencies around mortgages, selling another home, or inspections.
Buyers must be wary when giving up these types of contingencies as doing so proposes financial risk if the transaction doesn’t go through. Be sure to speak with your buyer’s agent to understand the risks so you can make an informed decision before waiving any contingencies.
Interested in buying a house in San Diego? Browse listings and see how much you can save with Prevu’s commission rebate.
Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.
Prevu – San Diego Real Estate
Photo by Jeremy Revlock on Unsplash
