Strange Strategies – Orange County Home Buyers Take Control

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Strange Strategies – Orange County Home Buyers Take Control

Strange times call for strange strategies

As not normal as the world economic situation is today, the Orange County Real Estate market is just as not normal.  Strange times.  Gone are the days when you shopped for a house, found one you liked, and haggled politely with the seller, then moved in.  In today’s market, buyers are making 3 to 15 offers AT A TIME.   No fair, you say?  Impossible!  What’s the point? How can they do that?

The Orange County Real Estate market is flooded with distressed homes.  Especially Short Sales.    Combine that with aggressive, determined buyers and you’ve got a bi-polar explosive extravaganza.  What’s that mean? Let’s break it down.

Consider an aggressive buyer.

This is a pre-approved or all cash buyer who is laser beam focused on the type, style, size, location, price, amenities, and anything else that you might want in a home.  They WILL buy a home in Orange County.  They are determined, tenacious, relentless, tech savvy, unafraid, bold, organized, employed, and destined for success.  Mix this with a Short Sale home for sale, where the outcome, timing, terms, conditions, price, and close of escrow is unpredictable.  Certainty and determination meets uncertainty and frustration.  Would you hitch only one wagon up to that scenario?  That aggressive buyer will answer – “not on my life.”

So what does this aggressive buyer do in a market flooded with Short Sales?

He goes after everything in his wheel house.  Like an automatic shutter on a camera taking multiple frames a second.  Or a Gatling gun firing continuous rounds of bullets.  Or a kid with a fist full of raffle tickets going after every prize at the fair.  Get the idea?  The aggressive buyer takes control of the only thing he can – the offers he makes.  And waits to see what happens.  Which automatic thermometer in the Thanksgiving turkey pops up first.

Flip to the other side of the equation.

Why in the world would an Orange County home seller go along with this?  Circle around the camp fire kiddies.  Here goes.

One reason sellers work with buyers who are making other offers at the same time is because the California Association of Realtors’ Residential Purchase Agreement has no line item to indicate how many other offers the buyer has made.  The buyer is not required to disclose the number of offers they’ve made.  Currently.  So the seller has no official way of knowing whether or not a buyer is firing off multiple offers.  Do some sellers ask?  Sure.  Do buyers always come clean?  Maybe.  Maybe not.  Are some sellers requiring that escrow is opened and the buyers’ deposit money is held pending bank approval as a strategy to entice the buyer to stick around?  Absolutely.  This is becoming more and more prevalent.

Another reason seller’s work with buyers making other offers is that seller cannot submit a request for approval to proceed with a Short Sale WITHOUT an offer.  They usually take the first offer they receive and work with their agent to submit the Short Sale Package to get the ball rolling with their bank. Regardless of how many other offers that buyer has made.  It gets their process started.  They may end up with an Approved Short Sale and no real buyer, but the process has begun.

Bottom line, just be aware of the behavior.  Whether you are buying or selling in today’s wild Orange County real estate market, the more you know, the more prepared you’ll be to face whatever the market brings you.  And you can strategize accordingly.

Ready to get in the game?  Give me a call.  Leslie Eskildsen.  949-678-3373

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