jane loveday

Here in San Diego we are experiencing (what is not usually known either in our local press or the national press) a very, very busy buyers' market with investors who usually peruse the stock market, now buying real estate. So what does that have to do with Property Virgins to coin a phrase from HGTV?!

Well, pretty much everything. With investors not taking stock in the stock market, they are taking leaps and bounds into our real estate market and buying with cash the best buys they can find. It is not unusual to find a property, call on offers in advance (we are a multiple offer market here now) and find you are gazumped (does anyone remember that phrase) by an all cash buyer.

It is inherent in this economy to look for the best investment for your dollar. First time homebuyers are beginning to get on the bandwagon, only to find in a lot of cases that investors are beating them to the post. I frequently call ahead to ascertain if there are any offers on the table, at or above asking - no actualy figures quoted - only to be asked if I am representing an investor (all cash) or a home-buyer. What is going on????

I now tell my buyers NOT to listen to the media, read the press, listen to the news, because in reality we are in the middle of a crazy, frenzied situation.

Tonight I showed 6 properties, of those 3 we had to wait for the key to be returned as it was already being shown and this is within a 1 hour window in the middle of the week - goodness knows what is happening with the rest of the hours in the day. One property was already in escrow - YIKES!

So my take... my point ... we need to educate buyers as to what to expect in REAL LIFE, not in the media, and to be on top of all offers they think they need to make, give their highest and best, and have realistic expectations that the bargain is no longer there.

Tomorrow may be too late, yesterday was right and today was a competition.....

My buyers (young couple) identified a home this past weekend, fell in love with it and decided to write an offer that very day. Two days later we are in competition with at least 4 other offers, all very similar - full asking price, some closing costs - so what should we do to make ours the best?

We could not go up much higher because the question of whether it would appraise was already an issue with the sellers, we didn't have much more for the initial deposit, but we wanted this home.

2am in the morning and I've got a brainwave, not a new idea but a great idea. First thing next morning I had my buyers write a personal letter to the sellers explaining why they had fallen in love with their home and also a bit of brief personal history! I also sent the counter offer back with a letter of my own and another from their lender supporting their ability to afford this home.

Meanwhile 4 other offers were submitted for this same home, and after a tense wait on my buyers part, we got the wonderful news that our offer was accepted. After a while I asked the agent what it was that made us the lucky ones - it was the letter!

Sometimes just the little things can make such a huge difference, and emotions are always at the center of any transaction. Making it just that more personal can really help.

IT'S A FEEDING FRENZY !!

Homebuyers can be likened to pirahnas right now when given so much coice, so much opportunity and the surplus of affordable housing right now. BUT ARE THEY? Not here in San Diego where the availablity of housing is dropping like flies!

Every home I've shown this weekend - to three buyers, has at least one, if not more, offers. What began as a regular search, with a set pricepoint, has now become the feeding frenzy buyers are facing - multiple offrs, many above asking price, frustration, effort, constant internet searching for the home they can afford which is habitable (or not) has become the norm and encouraged a new type of market here.

It's not what you want to pay, but can you go above the next offer, are you willing to up your price point, can you beat out the competition?

This has created a reaction known to us all back in 2005, and which is now happening at a much lower price point here in 2009. I don't know where this will take us, our prices are going up because of this, and low-balling is NOT working anymore - your highest and best is what it is all about.

I hope for the rest of the country you will soon encounter this, and prepare your buyers for what is to come, it's hard, and a lot more work than you have ever done before, but for those that can actually get an acceptance on a home, be it a short sale, foreclosure or, goodness, pray for a regular sale, it is worth it for our clients. We work for them and now we are truly working!

Tweet me at www.twitter.com/sdrealestate

Is the Gold Rush heading back to California?

Here in San Diego we were the first area to see the housing market slump dramatically, especially in our South Bay, Oceanside and Escondido markets. And last year was just awful in the real estate industry with the exception of our high end homes along the coastal region.

BUT WAIT, now we are seeing a total turnaround in most areas, although the majority of homes available are foreclosures or short sales, there are multiple offers on many, especially those underpriced for their markets, which is pushing UP their prices above their asking price.

Even those buyers and investors who can afford cash are being beaten to the post with even higher cash offers.

ALL of my buyers have offers on multiple properties (shortsales and foreclosures) and when asked for their ‘highest and best' are often placesd out of reach of the price eventually settled for.

Booming sales have whittled away existing home inventory to just six and a half months - down from 15 months a year ago and California's inventory now compares favorably with the rest of the country which has over 9 months supply.

Is the end near, is the gold rush coming again, from what I see it is!

Yessir, locally here in San Diego we have our eclectic community of Ocean Beach, and within that community is one of the best places to eat - O'Bistro - located on Voltaire between Cable and Bacon. It is a casual place, dogs are welcome as they are in most places in Ocean Beach, and the patio during rain storms is one of the coziest places to sit, eat, enjoy a full bar menu and listen to the rain falling.

Their menu is simple yet unique - try and Afternoon Delight sandwich, their Seared Ahi Wrap or simply indulge in their magnificent Lobster Bisque.

Can you tell I'm a fan - and I totally recommend to anyone wanting a fun, funky yet amazingly cool dining experience!

http://obistrocafe.com/

Thanks,

Jane