Buyers are hella picky right now, because they have to be.

Why are buyers in this current Bay Area market so darn picky? Because they can’t afford not to be. 

California has reached new heights in the real estate market by hitting the highest home prices the state has ever had. The average Bay Area listing price on the market right now is $1,600,915.  I mean yikes, that’s a big number, and the take away is houses are hella expensive here. 

To spite whatever else the Bay Area might have going on with political climate or heavy lay offs in the tech game, what have you, people still are wanting to live here. The average number of days a listing rocks it out on the market right now is 24. That’s just over 3 weeks, so to spite them substantial price tags, homes are still selling fast. There is still a housing deficit, there are still more people striving to move here than homes available for sale. 

But things are more complicated than the big demand for housing. Rates for mortgages are high, they stayed high when there had speculation they might fall. Insurance for homeowners is wackadoo. In many instances it can be nearly impossible to find a policy let alone afford it. There are nuances to consider. Oakland itself has had some wild crime rates going on, so homes in dangerous neighborhoods and areas might not fly off the shelf. Those listings might sit for a good hot minute. Surrounding areas, El Cerrito for example might appear more attractive than they had before and homes can still go for substantially higher than asking price. At the same time, just to keep things very complicated, neighborhoods too far from popular hot spots, are also experiencing a lull. People are very interested in being close to the cool stuff that makes the Bay Area an attractive place to live. People don’t want to buy too far out from the action. Neighborhoods have to hit that perfect mix of you might not get mugged daily, but you can walk to good coffee and theater. It’s a little mysterious…it’s a little hard to predict. Which neighborhoods will stay desirable and which will be on the outs? 

Because of the high cost of entry, buyers can’t be messing around. The condition of the listed home is a big deal these days. People can’t afford to pay top dollar and then have to turn around and drop more cash to fix some janky plumbing. Condition really impacts the level of interest and offers on a listed house right now. We’re not talking slapping some fresh gravel out front and repainting the front door, we’re talking about the bones, the electrical, the expensive stuff ya’ll. There’s no option to get in cheap, and then have extra money for the fix up. We are in a Bay Area real estate market where buyers need that house to be super foxy, extra fine, tip top condition. Because once you pay that get in the door cost, folks are bled dry. 

So if you’re out there in this wild real estate market as a buyer, and you spot something decently, mindfully, demurely, well priced, you better be ready to jump on that business brother! If you are a lucky buyer and you find something priced to sell you can be best prepared by having all your ducks in a row to strike while the irons hot. You gotta move it sister! It is competitive out there and if you’re not ready to put that offer in straight away, someone else will. 

Also remember to be real with what you are prepared to see diving into it. Homes are really expensive, expect to see expensive homes, do not hit the dirt thinking homes will be anything but expensive. It’s expensive to buy a home in the Bay Area. Last time for the buyers in the back; expensive. Okay, that’s been said. 

Now, get excited, bidding wars can be quite the rush! Yes, you are continually making a new move to spend more money, but anything worth doing is worth doing right! It’s an important purchase, and it’s thrilling to win a bidding war. 

What a time to be alive, buyers! 

If you plan on selling, listen up;

If you’re hoping to avoid your listing chilling for months with out serious interest, you best get your realtors to set a good, serious buyer attracting listing price. An excellent, professional realtor with deep knowledge of the market in your area will know what the right number is, and it’s important to get it right to gain interest from the kind of buyers you want. 

Like we touched on earlier- you would be smart to fix your nasty old roof before you list. If you’re serious about selling, it’s not a time to hope the buyers will be willing to do the work. They ain’t gonna want to do that, it’s not the climate of the market. On top of that, the quality of things like the roofing or the electrical will impact how hellish the buyer’s quest for home owners’ insurance must be. That is a bigger deal right now, than it may have ever been before. Having the important improvements done before listing will really expedite the selling process. 

As we’ve already hit mid September, election season is coming in hot. What if there is a huge flood buyer after the election plays out? And what about the possibility the fess will really drop the rates and the whole market changes? It all hangs in the balance, remains to be seen, but for now buyers are having their day. For once.