Can San Diego Home Buyers Compete with Cash Rich Investors?
Can San Diego home buyers needing financing really compete with cash heavy investors in today’s tight and fast moving real estate market?
Linda Lee thinks so. The president of the San Diego Association of Realtors (SDAR), Lee recently told UT San Diego the tale of her friends that were able to beat out 19 competing offers to get the home they really loved in Poway, despite being one of the few needing a mortgage loan to finance the purchase.
The SDAR president’s main advice for getting an offer accepted was getting approved for a mortgage and trying to close faster. Of course the odds of anyone looking at your offer or even letting you pull up in their driveway without one today is slim.
Who you get pre-approved by should make little difference. Of course savvy sellers and San Diego real estate agents will want to see an approval letter from the actual end lender not just a California mortgage broker, though brokers still offer many advantages for those buying a home. Plus, sellers should be more aware than ever that even the largest banks can’t be trusted or perhaps should be trusted the least, especially when it comes to home loans.
Try writing your purchase contract with fewer contingencies, for example being willing to take the home ‘as-is’, with right to inspect, rather than asking for repairs upfront.
Be serious with your initial deposit, though make sure it is made with your attorney or title agent of choosing only and never to the seller or their agent as this can make it incredibly difficult to get back in one piece.
Some suggest writing an accompanying letter outlining your personal story, just like a cover letter to compliment your resume when applying for a job. This might be overkill but at least have your real estate agent spin your story in the right way and put you in the best light. Just don’t forget to scrub your social media accounts first. If your Facebook profile tells a completely different story; one of a party animal who enjoys trashing hotel rooms on the weekend, you might find some resistance, at least unless you are buying a home from Johnny Depp.