The secret is out, the 2022 Monterey Peninsula Real Estate Market is just as hot as it has been over the last 18 months.
With even lower levels of inventory and what seems to be higher buyer demand with the FED planning to raise interest rates later in 2022, times are more challenging than ever for buyers in the Monterey Peninsula regardless of price point.
In this blog we will discuss the key points of how to write winning offers in our current market.
Terms, Timeline, Price
Terms:
When writing a winning offer as a buyer, you need to place yourself in the seller's shoes.
Ask yourself, “If I were a seller, what would I be looking for in the offer that I would accept?”
The answer is simple, “The Path of Least Resistance”.
As a buyer in our current market options are extremely limited, what this does is it causes all buyers in the market to flood desirable options.
When this happens buyers end up competing against one another more than in a typical market. With so much competition it is easy for sellers to expect “The Path of Least Resistance” to getting their home sold. As a buyer you need to be prepared to release inspection contingencies up or shorten the inspection timeline by a significant amount of time.
With the market moving so quickly the last thing a seller wants it to hang out in escrow with any given buyer for 17 days while they poke and prod the property for deficiencies.
Timeline:
Have you ever deposited a check and had the bank hold over the funds for what seemed like an eternity before the funds were made available? Do you remember how annoying that experience was?
As a buyer in this market, things are moving fast and sellers want to know that they are going to be paid as quickly as possible.
We all know cash is king and as a cash buyer you have the upper hand in closing timelines.
With so many cash buyers in the market, many buyers using a loan feel hopeless when it comes to competing with cash.
I’m here to tell you….THERE IS HOPE!
If you are working with a loan officer, ask them to work on getting you fully under-writing approved, that way when you are presenting offers, the only thing the bank will need is an appraisal on any given property. This will help you cut a solid 5-10 days off of your closing timelines.
Price:
The last thing we need to discuss, which is the first thing any seller is going to look at is….PRICE!
If you want your offer to get accepted in this crazy competitive market, the most important thing to consider is price.
Many buyers are weary of “over paying”.
The truth of the matter is, if your offer is the winning offer, generally speaking you are the highest bidder and therefore “over paying”.
Over paying more than your competition was willing to pay.
Don’t feel bad about over paying in this market. It’s truly the way to win.
With inflation taking us all for a ride I think it’s safe to say you won’t feel as though you had over payed for long.
If you are considering buying, selling, or investing in the Monterey Peninsula, please feel free to contact me at any time.
I would be happy to help you navigate a win in this wild Monterey Peninsula Market.
Respectfully always,
Mike Meza
