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Tips to Avoid a Bidding War on your Downtown Condo

By Mike in April 2014|Downtown San Diego Real Estate with 0 Comments

 

Downtown CondoThe Downtown Real Estate market is showing signs of improvement everyday.   Low inventory and high demand in the buying season are adding some natural competition to buyers offering on a Downtown Condo.   Rising values of Downtown Condos, a higher number of sales, and lower inventory levels have created a competitive real estate market in Downtown San Diego and throughout the county.  As a result of these factors, a Downtown Condo that is priced well is not going to last long on the market.  In fact, more and more listings for Downtown Condos are seeing multiple offers coming in.  This great for sellers, and a little more difficult for potential home buyers.  In order to be prepared, buyers need to be aware and savvy regarding multiple offer situations. So, here are a few tips to consider:

1. Get pre-approved for a loan before placing an offer on a Downtown Condo.
Pre-qualification simply doesn’t cut it these days.  In order to be presented as a serious and well qualified buyer, it may be important to submit a loan pre-approval letter with your purchase offer.  A loan pre-approval represents more information to be obtained, and as a result represents a higher level of qualification.  A pre-approval will require a lender representative to run your credit and ask for income and asset statements. This will require a little additional legwork on your part, however it will show that you are serious about purchasing this Downtown Condo.

2. Be Well Educated on the analytics of the Downtown Market
Evaluating the current Downtown marketplace, either on your own, or with an experienced Downtown real estate agent, will help you make a competitive offer from the start.  The offer should be based on comps and sales stats if possible.   An offer based on “what the buyer feels they should pay” will have less support in a competitive market.   In today’s market, sellers know that if they want to sell their condo quickly, they need to price them well.   However…don’t assume that sellers are not over valuing their condo and are not as equally prepared.   Find out what the recent comparable sales in the neighborhood have been and calculate your offer accordingly.

3. Don’t play games with “Lowball” Offers
The quickest way to losing out on a Downtown Condo you love is to assume that the seller is desperate, and will take the first offer they receive.  Sellers are not going to give their condos away in today’s competitive market, because values everywhere are starting to rise.  Time is always of the essence in Real estate, and the chances are good that another buyer will “win out” over your offer if you decide to play games with price.  If you really want that new Downtown condo, be aggressive within the confines of the current marketplace  and a reasonable percentage of the current List price.

We hope that you have found this information helpful.  92101 Urban Living is a real estate brokerage specializing in the sale and purchase of Downtown San Diego Condos and Lofts. Please let us know if we can be of service to you with more information. ')}