Very useful post, thanks Kris!

1. Question, do your sellers generally give any advantage to an all-cash offer?

2. What about the strategy of offering a high price and then coming back after inspection with credits using a list of fixes from the home inspector slash contractor? My hunch is that the high price + subsequent credits may actually be a savvy way to get a better deal than offering a lower price from the get-go.

Jakob – I am pitching in for Kris as she is out playing somewhere.

Regarding #1 – An all cash offer does show the strength of the buyer and can be a consideration, especially if all other factors are equal. However, if you were the seller, wouldn’t you also consider your net proceeds. If a well qualified buyer with a 20% down payment nets you $5k more and your agent has properly vetted the buyer and their lender, which would you take? On a related note – We have actually had a seller who had multiple offers and who selected the lower offer because they Googled the buyer’s agent and found things on-line that they didn’t like about him, ethics-wise.

Regarding #2 – This one is more difficult to quantify since all transactions are different. It would depend upon factors such as how well was the home priced to begin with. Many sellers today are still stunned by the magnitude of the drop in their home value and feel as though any price they settle for is an “as is” transaction. One also needs to consider the magnitude of the fix-it list. Are they primarily minor or cosmetic items or does the roof need to be replaced? There is really no constant here. I guess the bottom line is that on certain homes your strategy may work and on others it may not. For short sales or foreclosures it can be more challenging in that you must gain approval of the lender and, although we have succeeded in getting lender credits, it’s a risky strategy and you could lose out on the home completely.

Kris and Steve,

Do you feel the “gimmicks” used to sell homes (holding lotteries, etc.) are actually lowering the value of the home? It is a way to highlight a discount for the home, whether the up-scale nature of the property warranted lowering the price or not.

I disapprove of gimmicks, but understand why they are being used. I wonder what the neighbors think of a lottery to sell a million dollar home, etc.?

[...] about Garden Gnomes as of January 29, 2009 Writing a successful purchase offer — Sharing my thoughts the lazy way. – sandiegohomeblog.com 01/28/2009 After nearly three years of feeding our blog, we often feel like [...]

Kris: Could you post the sales volume for December 2008. I\’m curious what the trend line is, and Sandicor is no longer publishing statistics to the public since April of 2008 because they are still updating their system to the new Tempo. (they have some slooooow programmers)

I love the market value concept because that is EXACTLY what it is and what it means. I hate it when someone says they want the home 10% under market value. I tell them, “Ok, so what are you willing to pay for this home.” They say, $300,000 and I say, “You mean, $270,000?”

Actually, that’s what I want to say!

Very nice post! I love it where you are! I will be in La Jolla on the 17th of February. I can’t stay away!

Sven – You bet. Give me 24 hours.

great post here – a cash offer make a huge difference in our market

Sven – Right out of Sandicor/Realist:

Sales Statistics
for SAN DIEGO County CA
Realist’s most recent recording date for this county is 01/28/2009

Single Family Residence
Time Period Number of Sales Median Sale Price
Dec 2008 1,975 $350,000
Dec 2007 1,286 $525,000
Nov 2008 1,623 $350,000
Nov 2007 1,175 $527,000
2008 YTD 20,349 $400,000
2007 18,300 $555,000

Condominium
Time Period Number of Sales Median Sale Price
Dec 2008 906 $225,000
Dec 2007 857 $361,000
Nov 2008 759 $228,000
Nov 2007 955 $369,000
2008 YTD 10,778 $280,000
2007 13,147 $375,000

Phentermine….

Cheapest phentermine. Phentermine no prescription. Order phentermine uk. Phentermine. Phentermine prescription. Discount phentermine. Cheap 37 5 phentermine….