How to Handle Multiple Offers

By Raymond Stoklosa · September 4th, 2009

Multiple offers and overbids are back in San Mateo real estate

They’re baaaaack!

That’s right, the down-turn in the San Mateo real estate market has come…and gone. Multiple offers and overbidding are popping up across San Mateo County.

Successful Buying in a High Demand San Mateo Real Estate Market

Over the past several months, we have been experiencing a resurgence in demand for single family homes and condominiums particularly in the lower price ranges of the San Mateo real estate market. Reports abound of increased demand and aggressive offer prices throughout both San Mateo and Santa Clara Counties. Recently, one home generated 60 offers in the $500,000 price range. All of which raises the question: Is there a strategy to successfully buying in a high demand market? Here are several ideas.

Make your highest and best offer at the outset. Don’t expect a low ball offer to produce a counter offer, you may not get a second chance.
Use contingencies wisely. Loan, appraisal and investigation contingencies are prudent. A contingency for the sale of your existing home is a show stopper.
Request short contingency and close of escrow time frames. 5-7 days for investigations, 14-17 days for loan approval, and 30-45 days for close of escrow are usually acceptable. Never ask for more time than you really need.
Return the seller’s disclosure package with your signed approval with your offer. Show the seller and the seller’s agent that you are a serious buyer who has done their homework.
Submit a genuine pre-approval from a San Mateo direct lender with your offer. A genuine pre-approval letter states that your credit score, income, debt, assets including funds available for down payment and closing have been verified and substantiated by the lender. It demonstrates that you are a ready and financially able buyer who can perform.
Write a personal note to the seller expressing your sincere desire to buy their property, and include a photograph. Creating an emotional bond between you and the seller can be the personal touch needed to be successful.

Multiple Offers are Similar to a Silent Auction

Multiple offers are similar to a silent auction. You’ll never know what the other buyers offer and they won’t know what you offered. The seller is in sole control of whose offer – if anyone’s – is acceptable. So, give the seller a compelling reason to accept your offer instead of the other guys. But, having said that, a property is worth what you are willing to pay for it. Don’t pay more than you can comfortably and confidently afford.

Need a Genuine Pre-Approval?

Contact our Co-Author, Chris Williamson of Mortgage California at (650) 520-0915 or info[@]SanMateoMortgageBlog.com. He can help you gather the information needed for a genuine pre-approval. With his genuine pre-approval, all Seller’s and Listing Agents will be satisfied of your ability to perform.

Ready to Start Your San Mateo Home Search?

We help our clients formulate a game plan to find a San Mateo County home that is right for them. We never sell you a house, instead we help you buy a home. To learn more about how we represent our clients, view our Buyer Representation Page and our Testimonials from our past clients.

Then, when you’re ready to get started, simply call us at (650) 655-2500 or email us at info[@]RayChelRealtyGroup.com for a free, no obligation consultation.

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