How Can I Compete in a Costa Mesa Sellers’ Market?
The Orange County real estate market has shifted, and we are in a strong sellers’ market with just over a month worth of inventory (meaning if no more homes were put on the market for just over a month and continued to sell at the current pace, all would be sold in just over a month).
This does not mean that you can’t buy a home though it does mean that you will likely have to be more patient and more willing to consider different homes and different ways to write up your offer. It also means that you are unlikely to get the deal of the century at this point in time.
What can you do to make your offer stand out if there are multiple offers?
Things to consider to make your offer as strong as possible:
- Offer your best price – Expect that there will be multiple offers, and if you don’t make a strong offer, you’re likely to not even receive a counter offer
- Limit your inspection contingency – Instead of the usual 17 days, perhaps you might lower it to 7 days. This way the seller will know sooner if you’re not going to proceed with the escrow.
- Remove the appraisal contingency – In many cases, with the market moving as quickly and competitively as it is, buyers are making offers over appraised value.
- If you’re going to do this, you need to understand that the seller will likely expect you to come up with the difference between the appraised value and your purchase price.
- What does this mean? If you’re making an offer of $600,000, and the appraisal comes in at $580,000, you may need to come up with the difference of $20,000 depending on the type of financing you’re getting.
- Remove the loan contingency – I have a very hard time recommending this even if you’re very sure that you’re super well-qualified, and yet I’m starting to see this come up more often.
- This might be a possibility if you could pay cash if you had to or if you’re willing to risk your initial deposit.
Would like to know more about making a winning bid on a Costa Mesa home, please contact Christine Donovan at 714-319-9751.