Most Powerball success stories begin with buying a nice home on the beach for your family (and even your parents, too). Recently, I was featured in a news segment on ABC Channel 10! They asked me to find the most expensive homes available in San Diego. Check out these listings for over $20 million dollars each in this video.
If you hit the jackpot, the housing market becomes limitless! You can buy all four of these properties and stay within a $100 million dollar budget. Give me a call if you're lucky enough to hit it big in the future.
Today, we're going to talk about making offers on new listings, and whether you should be waiting to make an offer in this market.
Most of the time, the simple answer to this question is "absolutely not." Whether we are in a good market or a bad market, when a good home at a good price comes on the market, it's going to sell fast. People like quality homes that are priced right and you have to make an offer on them right away to have a chance.
However, there are a few things you need to do first before going to make an offer on a home. You need to be prepared to enter a fast-paced market like this, and today we've got four great tips that will help you get ready to make an offer.
1. Get a pre-approval from a reputable lender.
There's no sense in going out there to look at homes when you don't know what you can afford. We have a preferred lender we would love for you to talk to before you go out looking for homes, so you can know exactly what kind of home you can afford when you begin your search.
2. Make a fair offer.
If you try to low-ball a property, many sellers won't even respond back. In fact, we had this happen just last week with a buyer. You've got to make a fair offer, because the sellers have all the power in this market. It's ultimately your decision, but I would be glad to give you some expert advice on the topic.
3. Understand your/their motivation.
Some sellers really aren't motivated to sell, and those properties will sit on the market. You should consider making an offer on those types of homes because if they become stale inventory, you could probably get a discount. Some buyers may be cautious about purchasing a home, but should also understand why buying is such a good investment.
4. Make sure your agent knows your outs.
There are certain stipulations on a purchase contract that can get you out of the contract after you've already signed it. A good agent is the only one who is going to know about these outs, and alert you to them if something goes awry.
As long as you've followed the four precautions I've mentioned, you should be ready to make an offer as soon as your dream home comes on the market. If you have any questions for us, don't hesitate to give us a call or send us an email. We're here to be your #1 real estate resource in San Diego.
Can you trust Zillow to give you an accurate home evaluation? The answer is YO: yes and no. It all depends on your neighborhood. Typically, Zillow estimates are off by 5% to 15%. However, if you're in a cookie cutter neighborhood, where multiple homes have the same builder and similar floor plans, then it's pretty easy for Zillow to estimate. It may not be completely accurate, but it will be closer than an estimate for a home in a custom neighborhood. Other neighborhoods can be more difficult. Zillow uses an algorithm, so if you're in a custom neighborhood like La Jolla, Zillow has no way of knowing all the features of your home. If your neighborhood has different builders, custom homes, and different amenities, Zillow is going to be way off. For instance, in La Jolla, the way the home is positioned can significantly throw Zillow off. Some houses in La Jolla are angled for spectacular ocean views, boosting their home value over other homes in the neighborhood.
Ultimately, there are certain things Zillow cannot know. No one from Zillow goes into your home to check all the upgrades or renovations you have made. I recently went into a listing appointment where Zillow really underestimated the home value. The seller had made many upgrades and add-ons that increased the home value dramatically. Although Zillow is a good place to start, the best way to know your home value is to have a real estate agent come out to your property and run a Comparative Market Analysis. The CMA takes recently sold homes in your area and the unique features of your property into account, giving you an accurate value. If you have any questions, give me a call or send me an email. I would be happy to help you!
