Buyer's Tips

(Please scroll down for all the tips)

As you know, the San Francisco real estate market is hot, hot hot! Getting an edge in this competitive market can be tough, but I've collected 10 tips that can help. Be forewarned -- these suggestions are not for the faint of heart. Each is progressively more risky as you go down the list, but all have been used by one or more buyers. Here they are:

1. Price: Make the best and cleanest offer you can right at the start. Don't expect to see a counter. Pick an odd dollar amount for the price. Anticipate buyer's remorse- make sure you'll be happy to get the property at that price if you are successful.

2. Closing: Put in a fast close, but be flexible on occupancy to give the sellers time to move out.

3. Preapproval: Obtain a letter of preapproval from a bank or mortgage broker for the loan amount you are requesting. If you are making an all-cash offer, provide evidence that you do have the cash on hand.

4. Letter of Introduction: Write a letter of introduction to the sellers. Include:

• personal background on you and your family (include a family photo if you have one)
• your length of time in San Francisco
• what you do for a living
• how long you have been looking for such a property
• how much you appreciate the work that has been done to the property
• how accommodating you can be to the sellers time to move
• how they can rest assured that their old home will be in good hands (i.e., yours!)

5. Deposit: Place a sizable initial deposit in escrow ($10,000, or even 3% of the purchase price).

6. Waive negotiation: Give up your rights in advance to negotiate any credits or price reductions after inspections.

7. Pest Control Inspection: Waive the pest control inspection if a) the property is a condo, or b) one was done recently and you know what work (if any) was done, or c) you can rely on your general contractor to spot any dry rot, termites or other infestations. Be prepared to deal with any damage that might be found later at your own expense.

8. Loan Condition Time: Shorten the loan condition time down to 15 or even 7-10 days (consistent with inspections).

9. Waive the Loan Condition: Waive the loan condition in advance, if you are confident of your financial strength.

10. Nonrefundable Deposit: If you really have to have something, put up a nonrefundable deposit of $5,000, to be cashed only if your offer is accepted.

For a Buyers Handbook with information on how to look at a house, dealing with title insurance, inspections and how to close the sale, please contact me by clicking here.