Can Buyers in a Sellers' Market Succeed?

Can buyers succeed in a market that strongly favors sellers?

Here's a tale of 3 of my recent buyers and how they are faring in today’s market which continues to favor sellers.

Happy buyers(Happy buyers, Belmont, 2015)

 

 Buyer #1 – Success! Closed escrow in April 2016

  •        Bought a condo in Redwood Shores – made 3 offers before one was accepted
  •        List Price: $699,000
  •        Days on market: 7
  •        Multiple offers
  •   Every contingency waived, including appraisal & financing
  •        Gave seller approximately 6 week free rent back
  •        Sold for almost 17.5% over asking

 

Buyer #2 – Success! Pending sale, set to close June 9

  •        Bought a 3 bedroom, 2 bath home in San Jose, not in their preferred Sunnyvale
  •        Their 4th offer succeeded
  •        List Price: $1,248,000
  •        Days on market: 11
  •        Multiple offers; Waived every contingency
  •        Gave sellers 30-day free rent back
  •        Sold for approximately 16% over asking

 

Buyer #3 – made 5th offer today; waiting to hear now

  •        Entry-level single-family home in San Mateo, 2-bedrooms, 1 bath
  •        Days on Market: 7
  •        7-10 offers expected; my buyers have waived every contingency
  •        Their offer: roughly 15% over asking
  •        Waiting to hear; waiting is hard. Will they be successful today?

Buying a home in a market that favors sellers is not for the faint of heart, but with perseverance, success will result!

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Today | Sotheby's International Realty

San Carlos, California, 94070

CA BRE#01215160; 650-465-4547

Lottie@LottieKendall.com;

www.LottieKendall.com

www.SFCondosForMe.com

 

 

Comment balloon 10 commentsLottie Kendall • June 04 2016 05:48PM

Comments

Good morning, Lottie --- you have provided buyers looking in your area a heavy dose of a realty reality check.   Some buyers understand the situaton quickly, others learn after some missed opportunities while there are some who never quite get it.   It's difficult but not impossible to succeed in an extreme sellers' market.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 2 years ago

Hi Lottie, I really enjoyed your examples. We are in the business of making deals happen and you do so in a hard market and give us motivation.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) about 2 years ago

Wow, it's been almost a decade since we've seen a sellers market here.  We still are flooded with inventory and there is no sign of it changing soon.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 2 years ago

Hi Michael Jacobs - I think the moral of this tale is that buyers need to have fortitude and be willing to take risks to succeed in our sellers' market.  It's unpredictable just where prices will end up.

Hello Noah Seidenberg - figures, stats, charts all help educate our buyers; tales like these often help them "get it."

Hi Tammy Lankford, - wouldn't it be wonderful for all if we had a more balanced market? 

 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) about 2 years ago

Lottie Kendall -  The numbers don't lie 16%  to 17.5% over asking are numbers buyers can work with if they are working with an agent like yourself that understand the market conditions!  Excellent post for buyers!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) about 2 years ago

Even knowing the numbers, Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com can leave a buyer out of luck--numbers change! But--one needs to start somewhere, and the number is a good place.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) about 2 years ago

Lottie big difference from the market where you are and here in CT.  Waiving all contingencies would be unheard of around here, even in a Sellers Market.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 2 years ago

The only saving grace is that sellers generally get pest and home inspections, as well as others that might be advisable up front, so buyers at least have that information before submitting an offer. If we don't have a complete package, buyers definitely need to have a contingency built in. 

Waiving financing and appraisal contingencies can be very stressful to buyers; we have many conversation about what happens if a property doesn't appraise.

Wishing for a return to a more balanced market, George Souto 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) about 2 years ago

You obviously know every trick in the book, Lottie, to help your buyers succeed when buying a home in that HOT San Francisco market right now. Wow, it is so brutal, only the strong and the smart survive. We have a similar thing going on in Sacramento, except, of course, our prices are not nearly that astronomical.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) about 2 years ago

No matter the price point, buyers must have fortitude in our markets today, Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) about 2 years ago

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