Anyone trying to buy a condo in San Jose right now knows that it is a very different market. There are more buyers than sellers and many Downtown San Jose condos sell with multiple offers over list price. Some homes go as much as 20% over asking, but some do not. How does a buyer make the decision about how much to offer to have the winning bid in a Downtown San Jose condo multiple offer situation and not overpay?
The answer is not simple, and sometimes it is not a question of price, but terms, like contingencies, length of escrow, length of rent back, etc.
But for right now, let's just discuss price. Here are some things to keep in mind when you make an offer on a San Jose condo in a multiple offer situation,
1. In my opinion the most important thing is, how much is this home worth to you? In other words, what price would you offer so that if it sold for $1000 more you would not be sorry because you do not want to pay that much. It may be that you would pay more than your offer if you could, but you can't so you are just doing your best. But if that is not the case you need to decide how much the house is worth to you so that if you do not get it you will not have regrets.
2. How is the asking price of this condo compared to market value? If the condo is listed low it will get multiple offers and sell for much more. If it is listed at or above market value it will not. This is not rocket science. Figuring out market value can be a little tricky since there are many variables, and the market is a moving target, but a good San Jose real estate agent should be able to help you analyze comps. Once you know the market value you will have to offer more in an appreciating market like we are in now. Sorry, but that is the truth.
3. What is the style of the listing agent? Does he or she like to list condos very low to get as many multiple offers as possible on their listings? Does the agent over value a home to try to get more money for their client, or just try to win out on a competitive listing? Does the agent like to work with multiple counter offers, or accept the the first best offer? Your agent should be able to give you insight into what other San Jose real estate agents like to do.
In the end, the final offer price and terms will be your decision, but if you have a great San Jose real estate agent he or she can help guide you through the murky waters of Downtown San Jose condo multiple offers.
If you have any questions about buying or selling a condo in Downtown San Jose please feel free to contact me.
If you would like to search for condos for sale in downtown San Jose click here.
Marcy Moyer
marcy@marcymoyer.com
Ca B.R.E. 01191194
650-619-9285
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