The number of transactions involving multiple offers has increased dramatically since last year, but that’s not necessarily a bad thing for buyers.
About 80 to 90 percent of transactions this year for the company have had multiple offers on either side, compared to just 50 percent last year. Davies Company Real Estate Owner and Broker Dawna Davies recommends a backup position for an offer, if the original offer isn’t initially accepted.
“The market is very competitive now, so it’s important for homebuyers to have someone who can help them strategically navigate the process,” Davies said. “I often recommend that motivated buyers commit to a back up offer position, even if the home is in escrow and their initial offer wasn’t accepted. If the seller agrees to accept a back-up offer and if the first buyer backs out, your offer could go into escrow immediately without any competition. This is key for buyers in a rising market, because the price may increase if the property goes back on the market after a cancellation.”
Even if a home is in escrow, the transaction can be canceled for any number of reasons, including problems that are revealed during home inspection, title concerns, or complications with loan approval for the initial buyer. That’s where expertise and strategy come in. In Davies’ experience, there is a 10 to 50 percent chance of having the initial buyer cancel. For the right house, this can create more favorable odds than a better house at a better price coming on the market during the same time period.
“I’ve seen buyers get discouraged because their offer wasn’t accepted, but I have multiple strategies for getting the best for my clients,” Davies said. “I would recommend buyers go with a real estate agent with experience and a track record of negotiating the most benefits for their clients.”
Davies’ real estate experience spans back more than 25 years. She owned her first property at just 10 years old and paid her own way through college with the results of her real estate investment plan. Now, she helps people upsize or downsize, invest or divest, or just reach their real estate goals. In fact, she’s signed over 4,000 closed sales, purchases and leases in her real estate career.
Based in San Luis Obispo, Davies Company Real Estate guides clients through their real estate transactions. For more information, call (805) 544-5889 or visit www.DaviesCo.com.