3064 Taylor Way, Costa Mesa Series – Post 1 –Getting Your Offer Accepted
Have you been looking through to buy a home in Costa Mesa lately? Have you been looking at short sales and REOs? Probably so considering more than 35% of our market consists of those property types.
Do you know how to get a short sale offer accepted? Have you tried to make offers on this type of property and had a hard time getting your offer accepted? It can be really, really tough….I’m starting this series of posts focused around a property my buyers just got their offer accepted on in Costa Mesa.
My clients have been looking for a long time- I think it is approaching a year. They had found me after working with another Realtor for several months who did not quite have the Costa Mesa real estate experience they were looking for. They were referred to me becasue they were told I was a very patient Costa Mesa Realtor.
We looked at many, many Costa Mesa real estate properties in the last 9 months that I have been working with them. We even went into the neighborhoods bordering Costa Mesa in Santa Ana. When we started the process, I told them what was important in short sale and REO offers- reduce the things you are asking for and give them as reasonable an offer as you can. Typically, short sale and REO properties in our area are already discounted- asking for an additional 10% off is flat out rediculous when the property has only been on the market for less than a month. (Different story if it has been on for a long time)
3064 Taylor Way- KitchenWhat other tricks are there? On the property at 3064 Taylor Way in Costa Mesa that my clients offer was just accepted, we offered over asking price. Why? It is really important to review the comps in an area before you offer. The comps suggested that the price of $420,000 was extremely low for the property and its location. There were ultimately seven offers, and my clients offer won the battle.
Why else did the offer get accepted? Many of you are trying to use FHA financing or conventional financing with less than 20% down. Do you think that hurts you in a competitive playing field? IT SHOULDN’T!! Sorry, was I yelling? My clients offer that was accepted was not all cash and was not using the standard 20% down. How did we beat the other offers?
Here’s a short list of strategies in a competitive offer/ multiple offer situation in Costa Mesa real estate:
1. Show them the $$$ – Your agent can review comps as well as you; if it is priced right, show them the money.
2. Take out the Closing Costs– When the seller and the bank looks at the net loss, taking closing costs out will help your cause. There are lots of mortgage professionals hungry for business; negotiate their fee so your closing costs are reduced.
3. Reduce Contingencies– Shorten the time span on things like inspections. If the property is significantly underpriced, you can shorten things like appraisal contingencies.
4. Be Complete – When making an offer, give them everything up front – proof of funds for your down payment, a copy of the deposit check, your loan pre-approval, and any other supporting information (FICO scores). When I spoke to the other Realtor on this transaction, he said half of the offers were still scrambling to get complete information into him.
5. Work Quickly – It amazes me how things happen in Costa Mesa real estate. It’s Murphy’s Law – Just when you finally make up your mind to make an offer, someone has beaten you to the punch. Make the offer immediately – if you change your mind later, there are ample ways to back out of the deal.
Tune in soon – we have our inspections this week, and I will post about how those go. Check out what to watch for in the next post on inspection day here.
These are just a few ideas. Looking for soemthing like this home in Costa Mesa real estate? I would love to help you find something!! Give me a call, I know these neighborhoods inside out! Colin Delaney 714-743-9882 or via email.
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