San Jose Housing Market: Making a Competitive Offer
You’ve found a property you love. Now it’s time to make an offer. As experts in the fiercely competitive San Jose housing market, we understand the challenges you face. Multiple offers above asking are not uncommon. Allow us to guide you with proven strategies to compete successfully and secure your dream home. Let's navigate the process with confidence together!
Whether you're a first-time buyer or are simply new to the Silicon Valley market, understanding how to craft a compelling offer is essential to securing your dream home. This is especially true in desirable markets where demand outweighs supply, and every bid counts.
The good news is that people successfully create home-buying offers in San Jose all the time, ultimately getting them into properties. To date, we’ve helped 200+ families create compelling offers that got them the home of their dreams. We’ve witnessed the highs and lows of bidding wars and have seen clients emerge victorious, as well as others who wished things had gone differently.
In this article, we will delve into the strategies and best practices that can help you make a competitive offer. We'll explore the importance of your real estate agent, the offer itself, reviewing the comps, and how to think about market conditions and contingencies.
Competitive Offers in San Jose Housing Market
Research early: As soon as you think you are interested in a property, study disclosures, have your buyer’s agent ask questions of the listing agent, and spend at least two days before offers are due, to write a complete and thorough offer.
Not only does the preparation guide you to make a researched and thorough offer, but the communication is a key building block to differentiating you in the eyes of the listing agent.
Collaborate with your agent: Collaborating with an experienced real estate agent who specializes in the San Jose market is a game-changer. Their in-depth knowledge of the local real estate landscape, negotiation skills, and established networks can prove invaluable in helping you navigate the competitive bidding process successfully. Looking to buy or sell? Experience our exceptional real estate service and book an appointment with Theresa Wellman today!
Your agent will:
- Prepare your California Real Estate Purchase Agreement (RPA) - The RPA is the official document you submit to make your offer. Your real estate agent will not only prepare this but walk you through each section to make sure you understand it.
- Conduct extensive research - Your agent will research similar homes and provide comps, share what they know about market conditions, get a sense of property activity and interest level, help you formulate costs to move in/repairs, and gain an understanding of special terms that the seller wants.
- Develop a rapport with the listing agent - You want the listing agent to know how interested you are in the property and “put a face to the name.” Once your offer has been submitted, your agent can then ask “Hey, how does our offer look versus the competition? My clients are really motivated. Can we possibly change our offer before you meet the seller?” If your buyer's agent is able to get that information you will have an opportunity to act and get your offer in a better position.
Understand the California Real Estate Purchase Agreement (RPA) Document
The California Real Estate Purchase Agreement, often shortened to RPA, is a 16-page document that was revised, organized, and updated in December 2022 to put all the variables on the first three pages for easy reference. These first three pages act like a table of contents.
The RPA is your offer– it’s sometimes called a purchase agreement, contract, purchase contract, or offer. This is the document you turn in to the sellers with your offered price, details about the contingencies, and your signatures to show that you’ve read the disclosures.
Your real estate agent will be very familiar with the RPA and be able to walk you through it. However, it’s a good idea to have an understanding of the RPA before you’re ready to make an offer. For a deep dive into this document and to better understand what an offer entails, watch our video.
Review the comps: Before making an offer, it’s important to do some research into comparable properties, commonly referred to as “comps”, in the area. This will help you determine whether or not the asking price is fair and if there’s room for negotiation. Additionally, researching comparable properties can help provide insight into what type of financing options may be available for the home as well as its potential resale value down the line.
Your real estate agent will prepare some comps for you to review. They will find similar properties, noting items like list and sale price, price per square foot, and size of the home.
Starting your home search and want guidance? Search all properties here and exchange comments and questions on listings.
Know the Market Conditions
Researching the market conditions before making an offer is paramount, especially in times of rapidly changing dynamics. The real estate market is highly susceptible to fluctuations, and being aware of the current trends and conditions can provide you with a competitive advantage.
By researching the market, you gain valuable insights into recent sales, pricing trends, and supply and demand dynamics. This knowledge empowers you to make informed decisions and craft an offer that aligns with the market reality.
Understanding whether it's a seller's market or a buyer's market, the average days on the market, and the level of competition can help you strategize your offer and determine an appropriate price point. With market conditions constantly evolving, thorough research ensures that your offer is both competitive and reflective of the current landscape, increasing your chances of success in a rapidly changing real estate market. Stay informed with the latest San Jose housing statistics each month to make well-informed decisions. Our expertise ensures you have trustworthy data at your fingertips.
Tighten Contingencies and Terms
For your offer to be accepted, it needs to be as clean as possible. Put yourself in the seller’s shoes– they want the most money possible for their property, but they also don’t want to take a lot of risks. For example, a seller doesn't want to take a lot of risks with contingencies.
The more you can research upfront to tighten your contingencies, the better positioned you will be. If a buyer comes in with no contingencies, the seller is likely to take that even if it’s not the highest price.
Think you're ready to make an offer on a house in San Jose? Introduce yourself to our team and let us know how we can help!