How to compete as a buyer in Corona’s Sellers Market, by Jenny Gonzalez.

By Jenny Gonzalez

How to compete as a buyer in Corona’s Seller’s market

Aseller’s market occurs when the demand for homes is unmatched by the supply. In simpler terms, it is a market where there are more buyers than there are properties. These conditions tend to favor the seller more than the buyer in terms of payout, hence the term “seller’s market.” For most of 2021, Corona has been a seller’s market, with inventory dropping to as low as 60 at one point. As more buyers enter the market, it is hard to ignore the appeal that Corona has. Corona has ten neighborhoods that you can home and get to enjoy a dense suburban feel. With the average sale price of homes being $697 351 and homes spending a record low of just 12 days in the market in August, you are going to need to be prepared. Homes are receiving multiple offers, and buyers have to pay 5 percent over the asking price. With that in mind, here are a few tips to make your offer stand out.

1. GET A MORTGAGE PREAPPROVAL

It is safe to assume that a single home will receive multiple offers when you enter the Corona market. It is, therefore, in your best interest to be “offer ready.” That means you need to get your preapproval letter with you. And no, a prequalification letter will not give you the edge you need. A preapproval letter, unlike a prequalification letter, is a “proof of funds.” It is necessary to provide this to the seller as it acts as a safety net. The seller can take their house off the market; rest assured that you will afford and buy the home. Additionally, the letter means that you can submit your offers before the deadline.

2. MAKE YOUR BEST OFFER FIRST

If you want to stand out, go bigger or go home. Houses are receiving multiple offers, and to stand out, you must put your best foot forward. When you identify the neighborhood you wish

to live in, conduct a comparative analysis of what homes in that neighborhood cost. You do not have to do it alone; a real estate agent can be beneficial. Once you have a rough figure in your head, ask yourself if there is room in your budget to pay the list price and something over the list price. If not, you can expand your search to other “less hot” neighborhoods.

3. LOOK FOR HOMES UNDER YOUR BUDGET

The demand and supply dynamic has created a perfect storm for price appreciation. It is not unusual to see a home get multiple offers in this hot market and witness prices going up in bidding wars. If it is not within your budget to match those offers, that is perfectly okay. Instead, focus your attention on homes that are well below your budget. That way, you have room to bid up without dipping into your savings.

4. CONSIDER WAIVING YOUR CONTINGENCIES

Any home offer has some contingencies- things like completing a home inspection and receiving a mortgage commitment that must be fulfilled if the transaction moves forward. By waiving these contingencies, the buying process takes a shorter time. It is not without its risks though, should you opt to waive the contingencies, you are willing to buy the homes despite it having problems. This strategy is risky; therefore, consider whether you have room in your budget to foot any arising issues with the house.

5. DO NOT FALL IN LOVE WITH JUST ONE HOUSE

Sure, the house is pretty, but fixating on it alone is setting yourself up for major disappointments, and worse, bad financial decisions. Do not be carried away by the attractiveness of a home; you might end up buying an overpriced home that leaves you in more debt. Be realistic with yourself and remain true to your budget. Buy a perfect affordable house; you can always make changes.

Buying a home, all factors constant is complicated, factor in a seller’s market and becomes ten times more difficult. But by making yourself stand out, your odds at getting your dream home get better. Before jumping into the housing market, do your part and get preapproved –trust me, that will get your offer accepted. And if by chance you can make a cash offer, by all means, do so, sellers find it hard to resist a cash offer- less risk is attached to it. And, do not forget to have a budget that will ground you; it will remind you that that overpriced home is not worthwhile after all. Finally, get a certified real estate agent, one that has worked in the neighborhood you are eyeing. An excellent real estate agent is the secret weapon you never thought you needed, they will help you with the negotiations, and if they have a network, that could work in your favor. Are you feeling overwhelmed? Don’t be at the Power Is Now Media Inc.; there are experienced agents and mortgage brokers that will be more than happy to walk with you from the onset of your homeownership journey till you have the keys.

ABOUT JENNY GONZALEZ

Jenny Gonzales has been in the real estate industry since 1998. Her career started at a company that did Real Estate and Loans. After six months of mastering that craft-loans (She’s a numbers person), she drove straight into Real Estate. Her first listing was of a couple in their 30's that responded to a handwritten letter like all the other letters. The couple had spent on breast cancer treatments and had another baby coming. Their home cost them more than it was worth and just like that her first listing was a short sale in the 1990’s. Her first buyer was a family with children the same as hers and the father was a police officer, she found them a home under the Officer Next Door Program. Jenny has been fulfilling dreams ever since!

If you are looking for an agent to guide you or somebody else in the either selling or buying their homes in the Corona, reach out to Jenny Gonzales on our Website: www.thepowerisnow.com On top of that, if you are looking to get preapproved for your mortgage, or need mortgage advice, reach out to Eric Lawrence Frazier, MBA, at 800-261-1634 ext. 703. You do not need to go at it alone!

ABOUT THE POWER IS NOW MEDIA INC.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now

Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com

Eric Lawrence Frazier, MBA. President and Founder, The Power Is Now Media

Works cited

https://www.rockethomes.com/blog/home-buying/how-to-get-offer-accepted-insellers-market https://www.opendoor.com/w/blog/buying-in-a-sellers-market-tips https://www.cnet.com/personal-finance/mortgages/6-tips-for-buyers-in-competitivereal-estate-markets/