Winning the Bidding War – Understanding a Competitive Market

What’s it Like to Be a San Mateo County Home Buyer Today?

Very little has been spoken or written by the mainstream media about the current San Mateo County market environment you will encounter when trying to buy a home. As someone who is representing home buyers – in the trenches – on a daily basis, there appears to be a disconnect between what is reported and what buyers are encountering in this highly competitive, differentiated San Mateo County housing market.

San Mateo County Buyers May Only Get One Chance

In the current market, a “Bidding War Strategy” is being deployed by foreclosure sellers – banks selling their repossessed homes – to generate as many offers as possible creating an auction atmosphere. This strategy is purposeful and effective. We have so many people chasing so few foreclosed homes for sale in San Mateo County that it’s fair to say that the listing price is NOT the sales price. At best, it is the opening bid, and unfortunately a buyer may not get a second chance. Usually a buyer gets one chance to make his or her highest and best offer.

How Can I Improve My Chances of Success When Bidding on a San Mateo County Home?

What can a buyer do to have an opportunity to succeed? Here are several ideas.

• Preparation is key – do your homework. Understand the local real estate market and your competition.
  
• Manage your expectations – don’t expect a “steal of a deal.” Your goal should be to buy at fair market value and not overpay.
  
• Be pre-approved for your loan – have in hand a firm loan commitment from a direct lender.
  
• Understand cash is king – so plan on placing the largest possible down payment, and the largest earnest money deposit possible even if you need a mortgage loan.
  
• Make sure your Home Buying Team is knowledgeable, experienced and looking out for your interests. Your Buyer’s Agent and Mortgage Advisor are your strongest allies or they should be. Work with the best.
  
• Prepare a powerful offer package – the story of you, your family and the strength of your offer should be presented in the most professional manner possible. Your buyer’s agent and lender should work with you to develop a powerful presentation.
  

Back to the Basics…Education is Key!

I hope this gives you a sampling of what the San Mateo housing market is like today. If I’ve inspired you to do more research to educate yourself, intrigued you to ask more questions or encouraged you to do your homework and make sure you’re putting yourself in the best possible position to succeed…..then I’ve done my job.

Home Buyer Education Programs

Our home buyer education classes touch on various aspects of what we’ve discussed here – and a lot more. Although the titles do not fully depict the entire body of material presented, consumer protection is ongoing theme in all of our educational programs.

Upcoming Home Buyer Education Programs

To see a schedule of our upcoming home buyer education programs, take a look at our Home Buyer Education page.

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