Tips for Surviving an Unstable San Diego Real Estate Market

San Diego real estate is truly an ever changing industry. What worked for my buyers just 6 months ago, isn't working today.

What I'm referring to specifically are short sales and foreclosure transactions. 6 months ago I could submit an offer well under list price and walk away with a great deal. San Diego banks and lending institutions were pricing their short sales and foreclosures just under market and receiving only a couple of offers. There was the usual counter back and forth and with time, patience and a little reality about property values we could agree and lock in the sale.

Today, banks and lending institutions are pricing their listings well below market and receiving multiple offers. This works very well for them. Dealing with multiple offers allows them to pick and choose the best offer and move on to the next one. A San Diego real estate agent with 80 listings doesn't have the time to finesse each individual sale. Multiple counters would bog down their work to a stand still. Picking and choosing the best and final ... much better use of their valuable time.

This new process can be a little frustrating for the San Diego real estate buyer who finds themselves out bid by 12 other offers. I've spoken to many buyers who have made countless offers just to find themselves still without a sale. Research and a good buyer's agent are keys to success in this market. Timing, as well, also plays a huge factor in getting that "great deal." Submitting an offer quickly once a listing hits the MLS can give you a fighting chance. During the first few days of a listing, the listing agent is collecting the offers and packing them to be sent to the lender. If your offer isn't in early, you may miss your chance to be considered.

How to write successful offers this market:

1. Consult your Buyer's Agent regarding comps for a "fair" price and make your offer price reflect the property's true market value, rather than focusing on the list price.
2. Include a full pre-approval by a direct lender/bank (not a broker)
3. Offer a generous earnest money deposit (about 2-3%)
4. Make a good down payment
5. Shorten the contingency period for your loan and inspections.

Follow these tips and your chances of success go up exponentially! Visit my website to search all Downtown San Diego real estate.

Discover tips and trends in our San Diego real estate blog.

Karen Parrish
Team 73 Degrees
Keller Williams Realty
858.401.9588