Santa Monica Real Estate, Winning at Multiple Offers: The $10,000 Difference

Buying a home in Santa Monica?

Summer has come early in Santa Monica real estate. Over the past week, 3 condos have come on the market North of Wilshire and all three had multiple offers and are currently in escrow. With a shortage of inventory, low interest rates, and buyer demand; multiple offers are becoming a common obstacle to overcome. With the right agent, preparation, and flexibility you can win at getting your offer accepted.

Understanding what an increase of $10,000 on your offer, could be the difference you need to get your offer accepted on a home purchase in Santa Monica. Have you ever painted a room or a house? If so, you know  80% of  getting the job done well is preparation. The same is with buying a home in Santa Monica. 80% of getting an acceptance is your preparation. Offers are a combination of price and terms. In many cases, the seller does not always choose the highest  offer.
How to Win at Multiple Offers in Santa Monica Real Estate, North of Wilshire
If you are searching for a home in Santa Monica, including North of Wilshire, understanding what every $10,000 means is an important discussion to have with your Realtor and Loan Officer ahead of time before you get a counter offer. To break it down, for example, if you are putting 20% down your deposit will increase $2,000. The remaining $8,000 will be financed over 30 years at 4%. What it translates to is an extra $28 per month for your mortgage payment. Part of that payment is covered by Uncle Sam as a write off of interest on your taxes. At a 35% tax bracket,  it will be $18 per month. That is less than a cup of coffee per day.  Most people move every 5 years, after 5 years you will have paid $1,080. Adding it up, the $10,000 increase in an offer is approximately $1,080 over 5 years. When searching for a home or condo, needing a specific neighborhood, price range, school district, desired location: How often does a home come on the market with your exact criteria? Can you afford to let it go to another person? Understanding the $10,000 difference to you can mean getting the offer accepted on your dream home vs. letting it go to someone who does know the $10,000 difference.For more homes for sale in 90403, click here.

Kim Halverson is part of a dynamic sister team in the Prudential Santa Monica office. Together Kim & Kristine strategize with their client's to sell their home for top dollar, and get their buyer's in first offer position. To contact her, you can call 310-737-8173