I remember learning in high school science class that equilibrium is a state of “no force or disturbance in any one direction.” Applying this concept to real estate, one might say that a balanced market – one with “equilibrium” – would have roughly the same number of buyers as it would properties for sale.

Not that many months ago, many parts of the Bay Area’s real estate market were saturated with properties for sale. It was, in many areas, a buyer’s market – buyers had their way when it came to selecting from a wide range of properties in nearly every corner of every market. But now, as the economy has been coming back, and real estate along with it, the pendulum has swung and we have shot past that real estate equilibrium point in a nanosecond.

Today we have many more buyers than we have properties for sale. (Potential sellers, take note! It hasn’t been this good for sellers in a long time – but that’s fodder for another article.) Our market has gone from having too many properties on the market to not having nearly enough.

The “inventory” of properties for sale has suddenly become so slim that the supply is now far below the demand almost everywhere. The average time a property spends on the market has decreased by 40% over a year ago.  That makes life for hopeful real estate buyers really tough.

If you’re a buyer right now, you are probably in competition now for almost every property, and although your agent might tell you that you are a SPECIAL buyer (and I’m sure you ARE), it’s more than likely that every other buyer out there is just as special. And it’s just as likely that all of those special buyers are competing for the same property, creating a “multiple offer” situation.

What’s a buyer to do? For starters, be honest with yourselves about your expectations. Expect there to be multiple buyers for the same property and talk to your agent about what will make your offer stand out.  Understand also that an offer is not just about price. There are lots of other factors in a purchase contract that might appeal to a seller as well. Things like length of escrow, minimal contingencies, and even who you choose as your mortgage company can make a seller happy or have them quickly flipping to the next buyer in their stack of offers.

In some areas as recent as a few months ago, it was possible to ask for seller concessions and give-backs, but we are now in a time where those factors will send your offer to the circular file faster than almost anything else.

Work with your agent as any effective team would work together. Be sure that your agent knows your situation and your personality so that he/she can tailor their approach to each property that you choose to purchase.  Be honest and open with them, and don’t be afraid of what he or she will think. Ask your agent how you can best work together, and understand that while you really can’t do this by yourself, no agent is “Super(wo)man” and none of us bat 1000 in multiple offer situations.

Lastly, be patient. It will probably take a while, and very possibly more than a few offers before you win in a multiple situation. But keep trying, and listen to your agent. We do this every day. And yes, you ARE special.

A Bay Area native, Mark Penn has been a REALTOR® with Coldwell Banker since 2004. He is also active in animal welfare, and is a former educator, facilitator, and air traffic controller. Mark can be reached at mark@MyHomeInSonoma.com 

Article source: http://www.sfbaytimes.com/?sec=article&article_id=17489