San Diego News: How to Win a Bidding War for the House of Your Dreams

By Amy Green and Susan Meyers-Pyke

What is the one word that best describes most buyers getting into escrow right now?  Aggressive. No matter where you are looking to buy in San Diego, chances are the supply is low and the demand is high.  That means most likely there will be multiple offers on the home.  And sometimes that’s 3 offers and sometimes that’s 20+.  When a buyer says, “please show me the comparable sales in the area,” it’s almost a joke because with the appreciating market, prices are way above the last sale.

For example, we just got acceptance for a buyer looking to buy a 2 bedroom condo in Rancho Bernardo. When we looked at the comps, the most recent model match was at $265,000. We had offered $285,000 on one last week, but lost out because someone had bid higher. When another one came on a few days later, my client went as aggressive as he felt comfortable going, which was $300,000. That did the trick and we got acceptance.  There were 20 offers on that one!

We were representing a buyer on our own listing last week with a list price of $687,000. Nineteen offers came in and the buyer who got it offered way over asking price with the intention of getting a conventional loan. They decided to take out the appraisal and loan contingency! Now that is aggressive and something we would recommend only if the buyer is sure he can get a loan and/or is willing to cover the difference of a low appraisal if needed.

With this challenging market our one word of advice is to hire an experienced realtor that is working hard to look out for your best interests.  A top realtor will know how to put the best packaged offer together in representing you so that you will stand out in the crowd and get your offer accepted even with multiple bids.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s