What a crazy time for Real Estate in the San Francisco Bay Area with such a huge imbalance between supply and demand. Half of all houses on the market as of February 2nd in Marin County are currently in escrow. I just heard of a house that sold with over 50 offers! As a real estate agent in Marin, I've had my own experiences in the past 30 days were offering significantly over list price didn't win my clients the deal. In a market like this, you have to adjust your strategy as a buyer if you want to have a chance. It doesn't always come down to price. There are so many factors involved when it comes to winning a deal and every agent has their own unique method and resources.
In January, talking about Buyers only, I had 4 escrows. Each deal had its own strategy that my clients understood and "literally" bought into. For my clients buying in Marin, they knew they were going to have to compete. To sway the pendulum in their favor, we took advantage of every opportunity that I had control over. For one deal, I was able to inspect the property and review all of the reports before a disclosure package was even assembled. We had an offer within hours of the house going to market and were in escrow before showings took off. On another deal, I insisted my buyer submit an offer on a property already in contract to secure the backup position after doing due diligence and understanding the likelihood of the initial buyer not being able to perform. My client moves in this week and had we never thought outside the box, she would still be looking.
For my clients buying homes in San Francisco, it was a totally different strategy. Besides New York, I don't believe another major metro has been hit in the country as hard, real estate-wise, as SF was during the pandemic. For my SF buyers, they had to get comfortable with the thought of buying in such an uncertain time. For those looking in both the city and the north bay, looking at the stats made it an easier decision (especially to those with an investor/entrepreneurial side). With the Marin Market sales price up double digits and the San Francisco Market sales price down double digits, we saw this as an opportunity to in a sense "buy the dip" believing that eventually once herd immunity is achieved and a sufficient amount of time passes by, San Francisco and certain attractive neighborhoods will bounce back. I was able to get my clients who bought in the Marina and Pac Heights in at amazing prices and at the right time. Already in January, we've seen Days on the Market drop when compared to last year in hot areas of the city and prices slowly creep up.
If you need help in buying or selling real estate or want to learn more, reach out or visit my website at ericdschmitt.com. In my previous life, I lived and breathed the luxury car business. I learned deal-making skills from over 10 years of selling cars, negotiating SF real estate and running a company that we sold to a Fortune 500 company. I have 2 business degrees and a track record of success. There are thousands of agents out there to choose from, give yourself the best chance and choose wisely.