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April 2018 Real Estate Minute | Ivan Estrada Properties

 

Hello and welcome to the real estate minute. I’m your host Ivan Estrada with Ivan Estrada properties at Douglas Elliman coming to you from one of my favorite cities in all of LA, Downtown Culver City. And in this episode, it’s all about multiple offers bidding wars. I’m going be giving you a couple tips that’s going to give you a leg up amongst your competition. Well, the real estate minute is going to work like this. There are three segments, one minute each, three minutes total. Let the real estate minute begin.

How does a first-time homebuyer have a fighting chance in this real estate market when everything is going into a bidding war? Now here are two tips that you need to follow to better your chances. Tip number one. You have to submit a letter with your offer. It’ll personalize the offer and give you a better chance with the seller and the listing agent. Step two. There needs to be face-to-face communication with both agents. A study done by Michael Morse from Stanford University says that negotiating over phone text or email is more likely to fail unless both parties have actually met face-to-face. What this creates is MIR. Memorability shows your interest and it builds rapport. So, when the listing agent and the seller are reviewing offers, which one is going to stand out? It’s going to be the one with the letter and the one where the agents have talked, they’ve communicated, built rapport and they started building that trust.

The hot topic in the Los Angeles real estate market and around metropolitan areas is bidding wars, bidding wars, bidding wars. Now what can you do to better equip yourself? The first tip is having your agent create a comparative market analysis for you, which is a CMA. This will tell you the exact value of the home at its current state. Many agents are underpricing homes. For example, a property that’s worth a million dollars and listing it at 900,000 to create that bidding war. Now if you went into this knowing this you would have a better chance at winning and not overpaying. Tip number two how about looking at homes that have been listed for more than 90 days. They might have been a little bit overpriced, but I’m pretty sure the seller may be a little bit more negotiable where you can get the property at market value or slightly under.

HomebuyersarescramblingalloverLosAngelestotrytofindasingle-familyhomethatdoesn’t have multiple offers. Well, how about expanding your area of reach. For example, to the east we have Eagle Rock, Highland Park, and Mount Washington. These are great areas in the next two to three years these areas are going to boom and you’re going to have a huge return on your investment. So, you want to live on the West Side. How about, I’m going to say it starts with a V, the Valle, Encino, Sherman Oaks, Studio City. They are near freeways, great schools and tons of restaurants and shops on Ventura Boulevard. Keep this in mind. This is not your forever home.TheNationalAssociationofRealtorssaysthatthefirst-timehomebuyeronaveragestays in their first home for about five years. So, this isn’t your forever home. This is just your foot in the door to get some equity and some return on investment on your first single family home purchase.

Thank you so much for watching this episode of the real estate minute. I’m your host Ivan Estrada with Ivan Estrada properties at Douglas Elliman. I hope some of these tips help you win

in your next multiple offer bidding war. Now don’t forget to follow me on Facebook Instagram Twitter and YouTube and Ivan Estrada properties. if you like this video don’t forget to like and share. I’ll see you next time.

About Ivan Estrada Properties: Ivan Estrada and his elite team of real estate agents are dedicated to providing an unforgettable experience in finding your dream home in Beverly Hills and other areas in Los Angeles County. Call us today at 323.574.2317 or contact us here.