Sunday, February 17, 2008

Back Up Offers

Although many people assume that the market is "soft" at the moment based on what they hear in the media, the fact is that multiple offer situations are still happening in San Francisco. Not as often as they once did, but in desirable neighborhoods and well presented properties, you may very often encounter competition.

Just last week, two of our clients wrote offers on properties and were offered "back up position". Not only were they offered second position, but they were asked to raise their price in order to be there.

The first was a lower floor Tenancy in Common on Guerrero. It had only been on the market for 48 hours before they received their first offer which was over the asking price. They were planning to accept that offer, but were looking for back up offers as well, and our clients were willing to submit an offer in hopes that the first offer fell through. The first place offer did have contingencies, and especially with a Tenancy in Common, there would be a few hurdles during escrow. We would be waiting in the wings should something happen.

We didn't know the first offer was over asking until we submitted ours at asking and they asked us to raise it 5% in order to be in back up position. Being in that position secures your place should the first offer fall through. It means you have already negotiated price and terms, and you have the option to elevate to first position should you choose to do that when the time comes. You can, however, continue to hunt around in the meantime, and you can make an offer and purchase another home if you found something else. You would just then refuse the offer to elevate once it did come your way. The fact is, it does happen. Properties do fall out of escrow, and back up offers do move into first place.

The other back up situation we had last week was a multiple bid situation in Bernal Heights. The property was only on the market for a week and a half. They even moved the offer date forward due to the high level of interest. Our clients submitted a really strong offer, but were second of five. We were, again, offered back up position, but only after raising our price almost 5%. It was higher than our clients wanted to go, and the first offer was very clean so the chances of it falling out of escrow would be very low. Actually, I believe it will close this week.

Believe it or not, it still happens. Those two properties went five and ten percent over the asking price. San Francisco seems to be going strong. Even Zillow reports a 3% appreciation over last year in San Francisco. They report Daly City, South San Francisco, Brisbane, Oakland, and Alameda in the negative. Rates are low, and Bush signing off on the stimulus plan which will temporarily increase the conforming loan limit in high cost areas to $729,750 should help even further. It will bridge the gap between jumbo loan interest rates and conforming rates which has gotten wider in the past six months. As of now this will be in affect until the end of the year. Be sure and take advantage of these lower rates!


Anonymous said...

Simply desire to say your article is as amazing. The clarity in your post is simply spectacular and i could assume you're an expert on this subject. Well with your permission let me to grab your feed to keep updated with forthcoming post. Thanks a million and please continue the rewarding work.

Also visit my web site:

Anonymous said...

Highly descriptive post, I liked that a lot. Will there be a part 2?

Feel free to visit my web site: Seafood

Anonymous said...

Thanks for any other informative web site. The place
else may just I am getting that type of info written in such an ideal method?
I've a challenge that I'm just now operating on, and I've been at the look out for such information.

My webpage - las vegas golf instruction

Anonymous said...

Heya i am for the first time here. I came across this board and I find It truly useful
& it helped me out a lot. I hope to give something back and help others like
you aided me.

My blog post; Residential LED Lighting

Anonymous said...

It's actually a great and useful piece of info. I'm happy that you shared this useful information with us.
Please stay us informed like this. Thank you for sharing.

Feel free to surf to my page

Anonymous said...

If you wish for to obtain a great deal from this
post then you have to apply such methods to your won website.

Also visit my web page ... lower back pain medicine net

Anonymous said...

Hey would you mind letting me know which web host you're using? I've loaded your blog in 3 completely different internet browsers and I must say
this blog loads a lot quicker then most. Can you suggest a good web hosting provider at
a reasonable price? Cheers, I appreciate it!

my web-site - cheap golf schools in texas

Anonymous said...

Does your site have a contact page? I'm having problems locating it but, I'd like to shoot you an e-mail.
I've got some suggestions for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.

Also visit my webpage; golf gloves

Anonymous said...

Excellent post! We are linking to this particularly great article on our website.
Keep up the great writing.

my page ... las vegas golf lessons

Anonymous said...

Excellent article. Keep writing such kind of info on your blog.
Im really impressed by it.
Hey there, You have performed an incredible job. I'll certainly digg it and in my view suggest to my friends. I'm confident they'll be benefited from this site.

Look into my web page -

Anonymous said...

Good article! We will be linking to this particularly great post on our site.
Keep up the great writing.

Take a look at my homepage St Cloud Florist

Anonymous said...

Hi, I desire to subscribe for this website to get latest updates, thus where can i do
it please help.

Feel free to visit my web page sushi sake doral miami

Anonymous said...

Thank you, I've recently been looking for info approximately this topic for ages and yours is the greatest I have discovered so far. However, what concerning the conclusion? Are you sure about the supply?

Also visit my page; Las Vegas Golf Instruction

Anonymous said...

If some one needs to be updated with most up-to-date technologies
then he must be pay a visit this site and be up to date daily.

my web blog:

Anonymous said...

This website truly has all the info I needed about this subject and didn't know who to ask.

Here is my web-site - Orlando Chiropractor

Anonymous said...

Remarkable! Its genuinely amazing article, I have got much clear
idea about from this article.

My web site diet pills

Anonymous said...

Woah! I'm really loving the template/theme of this blog. It's simple,
yet effective. A lot of times it's very hard to get that "perfect balance" between user friendliness and visual appeal. I must say you've done a very good job with this.
Also, the blog loads very quick for me on Safari. Exceptional Blog!

Feel free to visit my page -

Anonymous said...

Article writing is also a fun, if you be acquainted with afterward you can
write if not it is complicated to write.

Feel free to surf to my page - mention

Anonymous said...

Fascinating blog! Is your theme custom made or did you download it
from somewhere? A design like yours with a few simple tweeks
would really make my blog shine. Please let me know where you got your theme.

My blog golfer sinkhole (