Buyers Need to Get Serious with Offers

The market has once again changed how buyers who need a loan need to write an offer to get into contract. In Sacramento County we have less than 1 month supply of inventory. Many properties are getting upwards of 30 offers -- no exaggeration. This is unprecedented even in the hey day of the boom of 2005. A healthy market has an inventory of 3 to 6 months. To say this is a seller's market is an extreme understatement.

The typical buyer/seller fees and contingencies are out the door if a buyer wants their offer accepted. It takes the typical buyer a few rejected offers to finally be willing to write a strong offer -- especially a first-time buyer.

Here are some tips for getting an offer to even have a chance of being accepted:

1) Offer a purchase price that is your highest and best; don't  hem and haw over $5K, just do it as it doesn't make that much difference in your mortgage
2) Increase the earnest money deposit well over the typical 1% to 2-3% or more
3) Ask for nothing -- no home warranty, no pool table, no chandelier that was explicitly stated in the listing doesn't stay
4) Pay for everything -- escrow, title policy, transfer taxes
5) If possible, make the offer non-contingent on the appraised value

I know all this seems like lunacy, and it is; however, it's the only way to even have a chance at this market with very little inventory and not buying with cash.