To say it is a new order for buyers in the world of real estate is an understatement — and not for the faint of heart. But whether you are buying your first home or your fifth investment property, the stakes are high to get your offer accepted. Almost all viable properties are getting multiple offers, and buyers are entering into bidding wars where circumstances force them into writing offers with no contingencies just to stay in the running.
Although it is a sellers-market, a good realtor will encourage their sellers to help streamline the process by having all their inspections done upfront. This allows potential buyers to view them all in advance so they are well informed and can make the best offer possible.
Financing is a contingency that often can be outbid by cash offers, which are becoming more ubiquitous in this fast-paced real estate market, especially in Napa Valley, an attractive target for the Silicon Valley and surrounding Bay Area. If obtaining a loan, it is essential to have done pre-work with your lender, so it is easier to lift a loan contingency if necessary. Doing so makes the offer much stronger as both the loan and appraisal contingencies can be removed, making it as competitive as cash. A good plan of action is to ensure you have a good lender and realtor working together and recommending unique courses of action tailored for each situation because they are often different.
Often buyers are in the process of selling their existing home when they find their next home to purchase. These days, having an offer contingency with the current home sale pending can often be a showstopper. A popular workaround is to obtain bridge financing. This solution allows a potential buyer to use cash from a lender to purchase their dream home while getting their present home ready for market, thereby allowing them to be competitive. It also reduces the added stress of selling and buying simultaneously.
The key factors contributing to this crazy market are the low inventory of available homes to buy coupled with low-interest rates. If you are in the market to buy today and are lucky enough to have your offer chosen, it can be easy to get caught up in the whirlwind of the moment. After your offer is accepted, take the time you are allowed to read all your disclosures thoroughly. Homeowner documents sometimes present some surprises, as do unique, older properties or country estates with a well, septic system, or other unusual conditions.
Whether you are a buyer or a seller, your licensed realtor is your consultant and there to guide you every step of the way. If you have any questions about the market, I welcome the opportunity to act as your consultant. Please don’t hesitate to drop me a line!
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