We often run into people that are “TRYING” to buy a house in our area of California (The Temecula Valley). People who have signed offer after offer to get either no response or multiple counter offers- pushing them out of obtaining the home they want. Eventually these Buyers either start making random offers on houses they don’t even really want- just trying to get one which doesn’t usually solve the problem or they burn out completely on the process. And they go back to renting, discouraged and not building equity in a home of their own.
In super hot real estate seasons this happens. Lots of offers. Lots of chaos. Only the strong and cash rich get the best houses. Insider trading so to speak, etc. There are seasons. ( roughly 2011-2013 in our area ) And you have to know what season you’re in when you go out to purchase a home (or sell one). In some cases only certain areas of the market are being affected by the season. You have to know this too.
But what if the season is neutral? It’s not a buyer or sellers market right now so a reasonable offer and reasonable negotiations should net you the home you want. Mortgage rates are awesome, Sellers have gained equity back. So why isn’t your offer being accepted? Here are some issues to consider:
- OFFER IS TOO LOW TO BE TAKEN SERIOUSLY Unless you have some insider information that the Seller is desperate or they have verbally opened themselves up to a low price…this is dangerous territory. You run the risk of insulting the Seller and now we are on slippery footing. Your Realtor should provide you with recent sales around the home so that you are educated on value. Make reasonable adjustments for upgrades/downgrades and put together a serious offer. If it’s determined that the house is not priced right to begin with- it usually indicate that the Seller isn’t being serious yet either and well, there’s nothing to be done about that yet.
- YOU HAVE MULTIPLE OFFERS OUT Unless you are an investor buying up multiple homes…you shouldn’t have more than one offer out. Every offer you sign is a good faith promise to purchase (if the home passes all your inspections) Why would you be promising to purchase more than one home at a time? If I’m the listing agent and I find out you have offers out on more than one house? You won’t be taken seriously.
- YOU’RE NOT PRE-APPROVED Listen the market is faster and smarter than ever before. You need to be armed with the exact loan dynamics you are planning to purchase this home with. This information needs to be in writing, submitted with your offer and it needs to be verifiable. Your financing needs to be clear in your offer to purchase. If you go house hunting before you have this we run the risk of not being able to obtain the home you want because we can’t prove (yet) that you are capable of the purchase.
- YOUR REALTOR IS NOT A PRO Here are some examples of how your Realtor can cost you the house;
- Poor Communicator- If you have any issues communicating with your agent- this could be an indicator that your agent may have trouble communicating with others, other agents and ultimately-communicating your offer satisfactorily.
- Not Accessible- Is your agent part time? Only available nights and weekends? Doesn’t answer their phone or return their calls quickly? Your agent needs to be 100% accessible during the negotiation stage of your offer.
- Not Experienced- There are exceptions to this- we all had to get through our first sales. But I would argue that most aspects of our business (real estate) cannot be taught. They have to be learned through trial and error. Are we better Realtors after 15+ years in the trenches? Absolutely.
So long story, short- The average days on market in the Temecula Valley have moved into the 30-60 day margin. This clearly indicates that the market has leveled and has become a more neutral ground for Buyers and Sellers to negotiate in. If you’re making offers and they are not getting accepted…take a look at this list. If you determine that a professional, full time real estate team may be the answer…give us a call, text or email at (951) 522-0518 and firstname.lastname@example.org
Connecting Qualified Buyers and Sellers in the Temecula Valley since 1998!