There has been a palpable change in buyer behavior since the beginning of this year, as rates maintain historically low ranges and the supply of homes on the market remains low, more and more homes get swiped off the market with multiple offers pushing the final sales price substantially over asking. This results in an unfortunate byproduct of buyers who feel burned by a missed opportunity. The next time around, those buyers are even more aggressive in the offers they present and so goes the current state of many markets in the Los Angeles area.
So where does that leave buyers? Should you be scared of that all cash offer, just waiting to swoop in over asking and gleam in a seller’s eyes, making it difficult for them to say no? Absolutely not. More and more the nuances and discrepancies in each offer are becoming paramount in the seller’s decision to accept. Contingency periods, escrow length, down payment, and overall seriousness of the buyers. Many times the offer that jumps up high at first, may end up messing around in escrow and end up falling through. So buyers should be diligent, patient, and put their best foot forward when putting together an offer. Don’t let the frenzy fool you into overpaying for a home when you wouldn’t have done so otherwise. Take the calculated step, look at the market as a whole, what comparable homes in the area have sold for, and be realistic. At the end of the day you want to be happy in the home you decide to buy. It’s a great market for buyers, but even better for sellers, these two diametrically opposed interests have created quite a unique market atmosphere, so adjust your expectations and be prepared for each scenario this market presents.