I was quoted on Monday in this SFGate real estate story. After reading what the editor, Tess McLean, wrote, I am reminded of just how hyper-local real estate is. Broad generalizations are helpful but hyper-local data is critical. While the Bay Area sees common patterns, such as the effects of too much rain, each market is slightly different. For example, the correction from peak prices in the Marin market has been far less than the correction in the Lamorinda market (in February 2023, prices in Lamorinda were down by -18% vs. only - 5% in Marin). For this very reason, it is critical to trust local specialists when obtaining data, listing houses, and buying houses. In fact, I teach Realtors across the country and always encourage them to go an inch wide and a mile deep when it comes to selecting how and where they represent clients. Following this approach makes it much easier to become a market expert and successful advocate for your clients.
Here are a few things our team is watching right now to better advise our clients and remain experts in the Lamorinda marketplace:
Appraisal Reports: Appraisers state in their reports if a market is declining, stable, or accelerating. DGT Thoughts… We are currently seeing the stable box checked.
Offer Dates: We are watching to see if offer dates are being placed on properties and if the outcome is successful. As of April 4th, there were 39 single-family homes listed, and only two had offer dates. DGT Thoughts… The results of having an offer date are a mixed bag and depend on how the house is priced. If priced on the low side of accurate, offer dates are working well. If the home is priced accurately, offer dates are not working as well.
No Offer Dates: 95% of houses are going to market without offer dates. DGT Thoughts… If sellers are willing to take the first good offer that comes in, not having an offer date creates momentum, and your house sells quickly.
Coming Soon Status vs. Full MLS Status: DGT Thoughts… If sellers are willing to price their house accurately and accept the first good offer that comes in, the coming soon strategy works well as it creates urgency.
Pre-Emptive (Early) Offers: DGT Thoughts… If a buyer is willing to write a quick offer over the list price with clean terms, we are seeing sellers accept a pre-emptive offer.
Cash Offers: Does cash make a difference in this market? DGT Thoughts… We are seeing trusts take cash offers up to 10% below higher offers that are financed.
Physical Inspection Contingency: Are buyers waiving their Physical Inspection Contingency? DGT Thoughts… If a home has been fully inspected, has a clean title report, and property insurance is easy to find, buyers are opting to waive their Physical Inspection Contingency to be more competitive.
Loan Contingency: Are buyers waiving their Loan Contingency? DGT Thoughts… Buyers are more likely to waive their contingency if a loan has been fully underwritten. If the loan has only been prequalified or pre-approved, the buyer is less likely to waive their contingency.
Appraisal Contingency: Are buyers waiving their Appraisal Contingency? DGT Thoughts… Buyers are not waiving their Appraisal Contingency unless they have a backup plan in place to handle an appraisal discrepancy.
Removal of Contingencies: Are buyers with contingencies competitive? DGT Thoughts… If in multiple offers or submitting a pre-emptive offer, the answer is most likely no. If there is just one offer, it is more likely than not that a contingency will be accepted.
The Dana Green Team is unique. We are a team of specialists (in terms of geographic location and skill sets), all collaborating on behalf of each client. In addition, we represent a fairly even mix of buyers and sellers. Because of this, and the fact that we also write and review offers frequently, we have data that other agents just don’t have. This is a tremendous advantage for our clients. Please feel free to ask us about the above topics or any other topics that might be on your mind!