How To Create A Strong Real Estate Offer

  • By Chassity Doremus
  • •
  • 25 Mar, 2018

Learn my TOP negotiation strategies to get you the home you love!

In todays competitive San Diego market, buyers are having to come up with new and creative ways to win the home that they love. Here are a few of my TOP strategies when drafting a strong offer.

1. A STRONG PRE-APPROVAL LETTER

A seller will rarely take an offer seriously without one. But this isn't just any pre-approval. We want to make sure you are in touch with a lender who requests all of your information and documents up front. The more known in the beginning, the better chance of qualifying during escrow. This is to ensure that once an offer is written and accepted, and escrow opened, that the lender doesn't then receive additional information that denies qualification. Your realtor should have a few trusted lenders to direct you to.

2. SHORTENING CONTINGENCIES

If you want to compete in a tough market, and you know you love the home, you can reduce contingencies. Where normally a loan contingency is removed after 21 days, you can have it removed in 17 days. You can do the same with the home inspection contingency. Why would you want to do this? Because it shows the seller that you really want the home and are willing to act diligently for it.

3. PERSONAL LETTER

Many people love their homes, it's where most memories are made. Many sellers therefore want to know that their home is going to another family who will appreciate the space JUST as much. So why write a personal letter? It gives you the ability to connect EMOTIONALLY to the seller/s. If you are able to portray just how much you will cherish the home and all of the reasons why you love it, it might just be why you get the home.

4. HIGHER CASH OFFER

It's not always the highest bid that gets the home, it's the strongest offer. A bid may be the highest but if a seller sees say only 5% down, they may be wary on if you can qualify for a loan, coupled with how strong your pre-approval letter may be. The seller may take liking to a lower offer with 50% cash down, as there is a higher likelihood the transaction will go smoothly once in escrow.

5. SELLER MOTIVATION

One thing you always want to understand is the sellers motivation. This can help guide which strategy can work best when drafting your offer. As your agent, I will call the listing agent until I get a great feel for what needs to happen for my buyer to get the home he or she wants, and for the seller to be happy. If the seller needs an extra month in the home, are you willing to offer a rent buyback period? If the seller holds great sentimental value to the home then you know you want to include a personal letter. Or, if you know the seller needs a quick close you can draft an offer of closing escrow within 21 days. (Of course check with your lender that this is possible first!)

These are all several ways to arm your offer. There are many more! If you are a potential buyer, do YOU have an agent that knows how best to compete in your market?

Is the San Diego Market Shifting?

By Chassity Doremus • October 5, 2018
If you live in San Diego, it's clear that living here isn't cheap, and that buyers have been experiencing an extreme lack of inventory and competition in the housing market for the past couple of years. And while homes this year are still appreciating just as strongly as they did the previous year, and sellers prices seem to be just as aggressive, there are some very early preliminary signs we can take a look at to see that there will be a shift coming that seller's are not yet ready to see.

As we entered the summer of 2018, 20% of sellers homes in San Diego saw a price cut in June, even though we aren't seeing much of an adjustment in how seller's are pricing their homes. We are also seeing an increase in housing supply. Supply in San Diego has gone up by more than 35% this year, giving buyers more options, and therefore more leverage. Over the next year, Zillow expects the rate of appreciation to slow to 4.7%, compared to the year to year 8% we have been experiencing, with a median home price of $584,100. More research indicates a full adjustment to a buyer's market by the year 2020.

One thing San Diego is still facing however is a constraint on construction, as homebuilders continue to fail to meet the rising demand of a new wave of millennial homeowners. Genworth Mortgage Insurance stated that the sales of first time homebuyers are up, totaling to over 985,000 homes in the first half of the year, the most since 2005. Coupled with many investors quickly snatching much of the inventory to flip as a rental property, San Diego was left with the tightest inventory it had ever seen. But as homebuilders catch up with demand and more homes come on the market, we can expect to see this change. 

Contact me today if you would like to learn more about the housing market, and as always, if ever you are asking when the right time to buy is, it should always be when it makes sense for YOU! Are you financially comfortable? Do you have any savings? What is your debt-to-income ratio?

How to Sell Your Home and Purchase a New One

By Chassity Doremus • September 4, 2018
Assuming you would need to sell your current home to use that equity to purchase a new home, below you will find an explanation of how to sell your current home and prepare to purchase a new one. By preparing for what happens if, not what happens when you may avoid certain consequences or hiccups along the way, and is why I am a firm believer in an educational process.

This is something I am working through with clients right now, who have just come to me to try and list and purchase a home all in the span of two weeks. The best way to go about this is to have your home on the market and even more preferably in escrow when you have found the next home you want to write an offer on.

This weekend my clients found the home they love, but because their home is not even on the market, their offer will hold little weight. Now, we are trying even harder to get their home listed ASAP so they can secure their dream home. An offer with a home not on the market is not great, an offer with a home on the market is better, and a home in escrow is the best scenario when putting in a contingent offer.

It's also very important to focus on getting the ball rolling on your current home, as that has to close before the second home can close. And if you did put in an offer where your home was not in escrow, the seller could accept your offer but if a back up offer came, they could send you a notice to perform. If you are not in escrow by then, they can cancel contract with you and accept the other offer. This is also why the most secure way is to have your home in escrow already, and to also price your home right to have several back up buyers in the event your buyer backs out. Having multiple buyers can allow you to stay in escrow on your future home.

The most common concern of homeowners is, "What if I cannot find my next home in time?", and that is why you can also structure, if need be, various things that can give you more time in addition to the 30 day escrow. First, you could extend escrow to 45 days. Second, you could also ask that you receive a rent back after the close of escrow, stating that you can live in the home for up to 59 days after the close of escrow. This would essentially give you over 3 months to find a home, and there are also the days your home is on the market before it is in escrow. And, even then if you might feel concerned, you can always add that the sale of your home be contingent on finding a suitable replacement property, so that even if you were in escrow with a buyer, if you did not find the home you hoped to find, you could cancel under that contingency.

Let me know if you would ever like to meet in person to discuss this or any other real estate questions. Knowledge is very valuable, and I hope to arm my clients with as much as possible throughout this process to make the best decisions for themselves and their investments. Contact me today!

New Developments in Chula Vista

By Chassity Doremus • August 4, 2018

My team and I of Pacific Sotheby’s International Realty drove out to Chula Vista to see first hand all of the new opportunities and developments expanding and evolving the area of east Chula Vista. Since the early 2000's Chula Vista has tried to shape itself a new community, and in 2018, we see a community starting to thrive. I have so much to share with you, as we stopped by a few up and coming communities in the Eastlake and Otay Ranch areas. Within just these communities, hundreds to thousands of new homes will be completed by next year.

What I will do is organize these communities by their respective price ranges.

Village of Escaya

The first community to share with you all is The Village of Escaya. The great part about this neighborhood is you have homes ranging from the high $300s to the low $800s. This community is being developed by Brookfield, Shea, and CalAtlantic. The developers of this community really hoped to create an inclusive and family oriented environment. With plans to open a Village Shopping Center, school, clubhouse with a pool and gym, several parks, and an amphitheater, this community is sure to set the stage for a “modern rustic” feel and a new way of living. In fact, the fitness center named HARVEST is to open this summer. They identify themselves as more than a gym, but a place that encourages their residents physical, mental, and emotional well-being by building a culture of perseverance and support.

The Flora home collection, built by Brookfield Residential, brings you the most affordable option, starting in the high $300s. The square footage of these homes is from 1,287-1,724, offering 3-4 bedrooms and 2.5 bath. This is a lot of space compared to many other areas of San Diego! These collections of townhome designs are stylishly planned for today’s homebuyer, boasting contemporary floor plans, private entrances, and designer finishes. These homes held tremendous value in my opinion, and is a great place to be as a first time homeowner looking in this price point.

The highest valued homes are found in the Hacienda collection, also built by Brookfield, starting at the low $800s. These homes offer 3,138-3,704 square feet, 4-6 bedrooms and 3.5-4.5 baths. They are currently in phase 5 of 13, contributing a total of three floor plans amongst 76 homes. Hacienda is offering a couple of incentives for prospecting home buyers. Depending on your line of work, for example if you are in law enforcement or teaching, you can receive up to $2,500 in savings. They also offer a free washer/dryer and/or refrigerator with purchase, saving you a few thousand more dollars.

Meridian

The next community I’d like to share is the Meridian Communities, presenting the Metro, Trio, and Evo collections encompassing a total of 217 homes. These homes range from $397,900 to $549,900. Each collection offering three floor plans, Metro offers the most affordable living, starting at a price of $397,900. You can live in about 1,300-1,495 square feet of home that can include a 2 bay garage and enclosed courtyard or patio space. Trio, attached 2-story garden homes, start at $473,900, and go up to $510,900. This collection will give you 3-4 bedrooms and around 1,650-1,880 square feet. This option can offer you a rear private yard, a nice island kitchen, and laundry room. The final collection, and highest valued of this community are the Evo townhomes, starting at $549,900. These homes welcome the most luxurious experience Meridian is able to offer its community, with 1,687-1,958 square feet, and one floorplan even offering an elevator option.

Vista Del Cielo at Bella Mago

The final and highest valued community of our visit was a stop by Vista Del Cielo at Bella Lago, nestled against the natural backdrop of the San Miguel Mountain. These homes are impeccable, where indoor and outdoor living spaces blend seamlessly and luxury living is truly experienced. A total of 52 homes and four floor plans encompass this Spanish Hacienda and Spanish Romantica architecture. Starting at $1,074,000 and going up to $1,271,400, you can get anywhere from 3,873 to 4,919 square feet of home. The finishes and features of these homes are pristine, and the floorplans consider todays lifestyle. Many of these homes offer an amazing open view. The photo pictured in this post was one I took at a model home in Vista Del Cielo. 

Let me know if you would like any further information on new developments in San Diego, as I strive to be the real estate agent you can rely on here in San Diego. Call or text me today! 760-200-7374

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