It was a busy and interesting first quarter in Lamorinda real estate! We anticipated the market would surge early this year, so we pivoted and encouraged Sellers to follow our lead and list their homes as early as possible in 2022. Hats off to those who did. Lafayette sales were up 23% over last year in Q1 (based on the increase in the median sales price). Moraga followed with an increase of 16%. Orinda got off to a slower start with a decrease of 6%. 

Here’s what we have learned from reviewing offers: 

Cash Matters 

With geopolitical tensions, rising inflation, rapidly climbing interest rates, a stock market with ups and downs, and appraisal issues creeping into our market, some Sellers are choosing lower cash offers vs. higher offers that require a loan being placed on the property.   

Multiple Offers 

• Multiple offers help us to negotiate and ensure you land at the highest possible price the market will bear for your home
• Multiple offers do not always equate to wild sales prices
• Multiple offers are much more likely to occur when you price below the perceived market value of your home or when you have a home that meets the needs of a large group of Buyers 

Sale Prices 

• Sale prices are rising quickly as Buyers scramble to lock in interest rates
• Record-setting sale prices occur when your house meets and exceeds the needs of the Buyer pool it has attracted
• Strong sale prices also happen when Buyers have been forced to wait for inventory in their price range or a sought-after area 

Buyer’s Needs 

• Buyers know what they want and are savvy!
• Buyers want square footage, room to grow, a high bedroom count or flex space, and a home that is stylish, inviting, treasured, or in a rarely-available neighborhood
• Buyers also want a resort-like backyard with a pool, firepit/fireplace, lawn, and entertaining capabilities 

Offer Terms

• Buyers are forced to waive all contingencies to win (nobody serious has a contingency)
• The pattern for the length of close ranges from 21 to 30 days (all cash offers are usually 7 to 10 days)
• Buyers need to “write to win” to be at the negotiation table and stand out from the start
• Buyers need to be fully underwritten for their loan to be competitive 

Seller Thoughts 

• Don’t cut corners and decide you don’t need to prep your home given the current Seller’s market
• If top dollar is your goal, follow our guidance and present a home in near-perfect condition (our staging will make it hip and appealing)
• Remember why you are moving and look forward (looking backwards becomes emotional)
• Price your home fairly
• Trust our process! 

Negotiating 88+ offers in one quarter gives us unprecedented insight into the Lamorinda real estate market. I can say with confidence that the knowledge we obtain gives you a powerful advantage over others if used properly. Our team of experts is here to answer your questions and guide you! 

Dana Green