As your San Diego real estate agent will undoubtedly tell you, the area is currently experiencing an extremely competitive housing market. On a scale of 1-100, with 100 being the most competitive market, San Diego scores at an 83. The average home sells within 14 days of being put on the market, and homes are routinely selling for above their listing price. Another name for a competitive market is a seller’s market, which means that there are more interested buyers in the area than there are properties listed.
However, that doesn’t mean that your dream of buying one of the Encinitas ranch homes for sale has to come to an end. With mortgage rates at record lows, now is still a great time to buy a new house. When you work with an experienced real estate agent and understand what it takes to buy a home in a competitive market, you can still make a smart choice and secure the right new home for your family. Here are six tips that will help.
Before you even begin looking at downtown San Diego’s new homes, you need to get everything in order so you can get preapproved by a mortgage lender. Your mortgage lender will need to verify your income and employment, check your credit, and perform their due diligence to determine how much they will lend you. The preapproval process takes about a week to complete and, once approved, will last 60 to 90 days. If you’re committed to buying a home now, get preapproved as soon as possible so you can have more buying power and be ready to make an offer as soon as you find the home you want.
In a competitive market, it’s a waste to spend endless hours looking at Encinitas ranch homes for sale that don’t meet your needs. Instead, you should be strategic and limit your search to homes that check off all your boxes. Before you begin your search, sit down with your partner and anyone else who will be living in the new house. What are your must-haves? What features are on your wish list? What are your deal-breakers? When you determine exactly what you’re looking for, you and your real estate agent can prioritize which homes to view first, so you have a chance at making an offer before someone else buys them.
During a less competitive market, you may be able to rely on online listing sites to look at downtown San Diego homes and identify the ones you want to see. However, in a seller’s market, homes are often sold within days of being listed, and those homes you see online may already be under contract by the time you’ve scheduled a showing. The best way to view homes in a competitive market is to work with a real estate agent who can alert you to homes for sale that match your criteria as soon as they’re listed. A good agent will pull data several times a day and can help you get into a home before others and make a quick offer.
If you’re currently renting, you’re in an ideal situation to buy in a competitive market since you don’t have to worry about selling your current home. If you do rent, make sure you have a plan to end your lease once you’re ready to move into your new home or budget to continue paying rent while you prepare your new house.
If you have your home listed with other Encinitas ranch homes for sale and plan on buying with the contingency that your home sells first, you may want to think again. In a competitive market, many sellers will not accept an offer that is contingent on the buyer’s home selling. They know that they will get plenty of offers that won’t require them to wait and will likely turn your contingent offer down. Work with your real estate agent to get your current home sold as soon as possible and make a plan to stay in a hotel or with friends until your new home closes.
Unfortunately, in a seller’s market, you’re not in the position of power as a buyer. Be prepared to accommodate their timeline, even if that means closing earlier than you had planned. Also, understand that you may not be able to ask for things like help on closing costs or inspections as you would in a buyer’s market. Talk with your real estate agent about any other contingencies you can remove from your offer to show the seller you’re serious about moving on the deal. The more you are prepared to say yes to whatever the seller asks for, the more likely your offer will be quickly accepted.
Working with the right real estate agent who has experience in all types of markets is more important than ever when you’re attempting to buy in a competitive market. An agent like Zach Weinger will help you quickly view properties you’re interested in, assist you in crafting the perfect offer, and help you increase your chances of having your offer accepted. When looking for downtown San Diego homes or any other type of property in the San Diego area, you will be much more likely to find and buy the home of your dreams when you work with a good agent.
Even though the market in San Diego is very competitive right now, it doesn’t mean you can’t still make a move and buy a home. Work with a good agent, be prepared ahead of time, and understand that the process may not always go smoothly, and you’ll increase your chances of completing a successful transaction.