If you’re aiming to close on a property in 2013, it’s a good idea to size up the competition and hone your strategy at this point in the year. After all, we only have a couple months left before Thanksgiving (I know!), and inventory slows down right after the turkey leaves the table.
In very thick multiple-offer competition, the biggest wild card will be whether a cash buyer steps into the mix who’s willing to pay top dollar to buy a home. As most real estate fans know, cash sales don’t equal discounts, and cash buyers know that they have to offer a competitive price to win.
So if you’re looking at a hot property in a neighborhood that’s prone to attracting cash buyers, you may be out of luck. For buyers with loans, it’s unfortunately the way it goes: Sellers are looking for a sure thing, and a quick path to their proceeds so they can get on with their lives.
Cash buyers picked up 184 condos/TICs and 98 single-family homes from July 1-September 18, 2013. Where did they appear, and which neighborhoods were hit the hardest?
Eureka Valley, Lower Pacific Heights, Bernal Heights, Portola and Ingleside attracted many single-family home cash buyers in that timeframe, with a majority of the sales prices landing in the $600,000-$1M price range. A total of 18 homes sold above $2M.
On the condo front, neighborhoods such as the Haight, Noe/Eureka Valley; Lower Pacific Heights; Western Addition; Pacific Heights; Nob/Russian Hills; Mission, SoMa/South Beach were the most popular ‘hoods for cash buyers. Sales in the $600,000-$1.2M range were the most common, though there were quite a few sales in the $1.3M-$2M range, and six sales were above $2M.
Word of advice? If you’re looking for a home in the aforementioned neighborhoods and price ranges, and the property you like already has 15 disclosure packages out, it might be a good idea to move on to something else if you aren’t willing to pay top, top dollar and waive contingencies. Buyer burnout becomes quite common at this stage of the year, and a change in strategy is one you might want to discuss with your Realtor if you want to be successful in your house hunt by year’s end.