Dublin Ranch Home Buyers: RUN! Don’t Walk…
There is a crazy phenomenon going on here in our local market — it’s on FIRE! It seems like only a few months ago (oh wait, it was only a few months ago!) that homes placed on the market would languish for weeks and have multiple price reductions before they would finally receive an offer from new Dublin Ranch home buyers that was 10-15% below the asking price.
But those days seem to be gone for now, and the market has created a total negotiation disadvantage for individuals looking to purchase homes, condos or townhomes in Dublin Ranch. There’s a few layers to this disadvantage — first, buyers have to write an offer for more than the property is worth in order to secure the deal. The problem with that, though, is that if that buyer needs financing from a bank who is doing an appraisal (and most of them do!), and the house doesn’t appraise (and it probably won’t!), then it’s back to the negotiation table or the buyer will have to bring more cash to close.
That leads me to the second disadvantage for Dublin Ranch homebuyers: cash is king! The more cash, the better; all cash is best! An all-cash offer means there is no lender involved, and therefore no chance for an appraisal to challenge the offered price later on. Our team recently sold an investment property for 133% of the asking price — all cash! In a multiple offer situation, a listing agent will likely advise a Dublin Ranch home seller to make the nod for an offer with a higher down payment, even if the purchase price isn’t as high.
So what is causing all this excitement? There are several reasons, but the #1 is the Federal Tax Credit that is expiring April 30th. That means that, to qualify, you need to have escrow closed by that date. If a Dublin Ranch homebuyer is securing conventional financing, they’ll need to have an accepted offer no later than the last week in March; if they are securing FHA financing they should be in contract no later then the second week in March! So it’s time to get moving, if we’re going to get there! If you would like to receive email updates on Dublin Ranch homes, condos or townhomes coming on the market we’re happy to help you in any way we can.