According to the California Association of Realtors, the median price for homes in the Inland Empire rose this month about .07% to an astounding $338,010. Yes my friends, we are in a seller’s market!
However, I don’t want to dissuade buyers from jumping in. This is a great market for buyers to get into the fun and negotiate like a pro! Although sellers may seem to have the upper hand, and in some cases, they do, buyers will have the best selection of homes to choose from. The secret is to negotiate wisely.
In this market, when you find the home that “speaks to you” just make the seller an offer he cannot refuse. Some ways to do this are to remove as many contingencies as possible.
What are contingencies? Well, when you go into a real estate transaction, you have many contingencies. Do you like the neighborhood? Does the home have problems? Are there clouds on the title? As a buyer, you have a full 17 days to decide whether this is the home for you. In this time period, you can do all the investigations you want! And, if in the end you decide this really isn’t the “one”, you can bug out!
So how do I make my offer better?
One contingency you can remove is the loan contingency. If you work with a lender who can get you fully approved, you can approach the seller with an offer that is NOT contingent upon loan approval! This will put you way ahead of the game! Your goal is to be the most attractive offer, yet with assurance that you still have time to do your due diligence to make sure that you have selected the home you anticipated. If you can remove the loan contingency, then you are above most other offers!
So, as a buyer, you really do have the upper hand. Don’t be afraid of making the “winning offer”… go for it!
Once your offer has been accepted, hire the inspector, talk to the neighbors, review the preliminary title report, have your realtor pull the comps… all of these things can help you decide whether this is truly the home of your dreams!
Property values go up over time; this is a fact. I hold a copy of a 1974 MLS publication for the city of Rialto. I can guarantee that a holder of property from that year has increased in value at least six-fold. Real estate is the one investment that, over time, is guaranteed to appreciate.
I want to encourage you. I know, it’s scary, but if you have the knowledge and the tools you need, you can make a deal that will benefit you in the long run.
Let’s get going!