Grasping at Straws

There’s one thing that’s incredibly obvious to me about the market in the last year with the spectacular lack of inventory we’ve had…that is that it’s competitive. I mean INCREDIBLY competitive! I listed a house at 1431 Schooner on Saturday and as of today I’ve given out 18 disclosure packets. That’s pretty good. Great actually. I’m looking at offers on Monday so that number will certainly go up. There’s a few things I know at this point. 1) the house WILL NOT sell for the asking price. 2) there will be multiple offers. 3) the winner will have a nice clean offer. I have no idea who that winner will be but the pressure this market puts on buyers is astronomical. The winner on ALL of these derbies are writing shockingly good offers. Today, in fact, I heard that an 820 sq ft 2 bedroom, 1 bath house in San Carlos listed for $849,000 (a price that I thought was shocking) sold last night for $1,050,000! I nearly fainted when I heard that.

What REALLY shocks me though are the agents out there who have no clue about what bit takes to sell a house now. It seems to have escaped many of them that there’s only 2 or 3 houses on the market in many of these towns. They seem surprised that there might be competition even when they see 300 people at an open house. Go figure!

On Schooner I’ve received two really illustrative questions that prove my point. The first one came form an agent who asked “Will the seller pay for the pest work?” The other one was a comment about signed disclosures. Here it is straight from an email I got:

Just the standard offer pkg will suffice right?

 A recent agent made us sign and submit her entire disclosure pkg with the initial offer.  Haha.
I know, a lot of you don’t get this, but if you’re going to compete in this insane marketplace you need to write as strong an offer as you possibly can. If there’s multiple offers there’s no way in Hell that any seller is going to pay for ANY work done. Also, is it really that hard to sign the disclosures and submit them with your offer? Ummm…possibly that could indicate that you’re serious about your offer. Just saying. Here’s my prediction…every single multiple offer scenario in Foster City this year will end up with a winner who has signed the disclosures up front and is taking it As Is. Sorry to burst anybody’s bubble but that’s the fact. For the buyers who don’t want to accept that please let me make this simple point. You lost about 20% last year, how much will the market appreciate in 2014 before your decide to write a clean offer?

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