Lot of hard work, late nights of contract writing, serious schmoozing and a lot of hair pulling- but I finally got 4 buyers into contract last week !! I can now confidently say that it is extremely difficult but not impossible.
Surprisingly, these contracts were not at a lower price point. In many states in this country those prices are considered luxury price points. Ranging from mid $900’s to $1.6 million range, the competition was stiff. Each one these homes landed up with 7-8 offers, which was not shocking to me but what amazed me was the fact that there was over bidding on each one of them and substantial money over the list price was laid down on the table. And, many of them had all cash offers- which totally shakes up my brain that folks have a lot of money in the Bay area, despite all the stories about employment numbers.
Luxury home prices are taking off, which in my opinion is the sign that all is well in the economy too. Overseas investors are flooding the market but in the last 2 weeks I have seen an uptick in local money coming from the Silicon Valley and the Peninsula. Many execs are pulling money from the stock market and investing in real estate. With a lot of heavy weights in the market, there is a massive squeeze on buyers who are first time entrants into the arena and who do not necessarily have the resources to compete. FHA has raised their costs so much that many first time buyers who want an FHA loan are getting priced out due to the upfront mortgage premiums.
My listings on 38 Serene Court and 5118 Fioli Loop received multiple offers in a matter of 3-4 days.
My conclusion after this grueling time for the past few weeks is that even though there is large sums of money being transacted, there is a lot of money at stake too ! Working with Realtors who have established credibility, track record and knowledge is the key that opens a lot of doors. Having received offers on my own listings and just staring at them with amazement at the shoddiness, utter lack of professionalism and the height of impoliteness- no wonder so many buyers are struggling to find homes.