Once again, cash is king here on the Westside of Los Angeles! With the record-low inventory and huge numbers of Buyers, we are not only seeing most homes fly off the shelves with multiple offers, but we are seeing an ever-increasing number of successful bidders offering ALL CASH!
LA TIMES Posts this Article on all-cash offerings in the past year.
As many Buyer's of Residential Real Estate cannot pull together the funds necessary to make an all-cash offer, they are often having to step up their financed offer to a price higher than that of the all-cash offers to even be considered by the Sellers!
Still, there is hope for Buyers looking to take advantage of the low interest rates and still secure the house they have been looking for!
7 Ways to make your offer more attractive to a Seller:
1. A higher price- Some Sellers are more eager to receive a higher number, than to close the sale early.
2. Contingency Removal- The California Residential Purchase Agreement has a default period of 17 days in which a Buyer can conduct all inspections. If you are confident you can thoroughly and diligently complete inspections on the property in a shorter amount of time, this could be a major bonus to the Seller. An early Contingency Removal often makes a Seller feel more confident that you are prepared to Close the sale. A word of warning though- do NOT skimp on inspections because of your shortened timeline!! Spending the time, energy and money to have your house thoroughly inspected is a must, and will likely save you a good amount of money and hassle in the long run. This is your opportunity to find out about the house- use it wisely and inspect, inspect, inspect.
3. Offer the Seller a leaseback- Some Sellers may want a quick Escrow to make sure the Sale is complete, but will benefit from being allowed some extra time in the home to get their affairs in order. Consider this gift of time as a way to sweeten your offer if the situation allows!
4. Write a "love letter" telling the Seller about you and why you connected with their home. Some Sellers do care about who takes over the home they have cherished memories in, and if all things are equal, will likely choose someone who they connect with.
5. Submit early- Be prepared to work with your agent as soon as possible to submit an offer on a house that you like. There are many houses in the area that receive dozens of offers; so many that the Seller has a difficult time reviewing them. As always, you must be prepared with a Pre-Approval letter (
not a Pre-Qualification letter) from a reputable bank or loan broker. If you are able to be one of the first offers in, a lot of Sellers see that you immediately felt a connection with their house and know it is right for you.
6. Have your agent ask for a Counter Offer- If the Seller has not asked for Best-and-Final offers upfront, make sure your agent communicated to the Listing Agent how intent you are in getting this house. Sometimes something as simple as asking for a response can make a huge difference in the attractiveness of your offer.
7. Allow the Seller to choose some of the Vendors- Some Sellers have confidence in a particular Escrow or Title Company, or have a Termite Company that has knowledge of the house. Speak with your agent and consider whether you want to offer to let the Seller choose these services upfront. In multiple offers, it is likely the Seller will want to choose these people anyways- so show them upfront that you are willing to be agreeable!
As always, I am happy to answer any questions you have so do not hesitate to call me! I am also happy to take your referrals if you know someone looking to buy or sell in the West Los Angeles area.
Good luck out there!
