As the housing market heats up here in our Greater Palm Springs area, homes priced under $700,000 have an absorption rate of 5.4 months. As a reminder, any absorption rate below six months equates to a seller’s market.
Since our market is currently trending in favor of sellers, it’s important that buyers prepare for the possibility of entering a bidding war during their home search. With that in mind, I’ve got four strategies to help you succeed against the competition and win out in bidding wars.
Understand how much home you can afford. Buying a home makes for a very emotional purchase. If you don’t know what your limit is, you could be suckered into buying more than you can afford. Your lender or financial advisor will be able to help you determine what your limits are.
Put your best foot forward early. If your first offer is one of several, you may not get the chance to improve it. In this scenario, let your first offer be your best. If it isn’t, you could be losing out on the home of your dreams.
Have your agent talk to the listing agent. This will help you better understand the motivations, wants, and needs of the seller. That way, you can better meet their terms. Proposing a shorter time frame, for example, may swing the deal in your favor.
Propose an as-is sale. The fewer conditions you put on the purchase of the property, the better the deal is for the seller. If you aren’t comfortable with an as-is sale, perhaps decrease the length of your due diligence period. You may also offer to pay for things that would customarily be paid for by the seller. Another option is to remove the appraisal or loan contingency.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
About WILL COOK GROUP|Keller Williams Luxury Homes|BRE# 01879277
Ranked in the top 1% of all agents valley wide, Will is an Associate Broker and Team Leader of the WILL COOK GROUP at Keller Williams Luxury Homes
A native of Baton Rouge, Louisiana, Will attended graduate school in Boston and worked as a Medical Software Project Director focused on managing client expectations through sophisticated software implementation projects for many years. Will’s experience managing large scale projects in the corporate world has suited his transition to real estate over 15 years ago. Will’s mission has been to use integrity and accountability to exceed his client`s expectations. He has worked in the luxury markets of Boston and Miami Beach and has also owned his own real estate firm in Louisiana.
As expert real estate advisers serving the Palm Springs Area real estate market, Will and his team specialize in finding buyers great deals and they would love to help you find your very own slice of the California Desert!