How to Buy a Home in Marin's Competitive Real Estate Market
Competition to buy a home in Marin is fierce. Prices are high and inventory is low, resulting in most homes receiving multiple offers and selling 5%-20% over the list price. But don’t lose hope just yet, there are some steps you can take to give yourself a chance at winning the home you love and it takes strategy, planning, and creativity. We’ve rounded up tips from the team to plan ahead, budget, and make a winning offer so you can successfully buy a home in Marin.
Recruit the best team before your search
FIND A LOCAL, REPUTABLE AGENT
In Marin County, there are over 2,000 licensed real estate agents but only 10% of agents are responsible for conducting 90% of all real estate transactions. The truth is, any licensed realtor can fill out a contract and pull comps. But in a competitive market, things move fast and that’s why you need an agent who is responsive, honest, reputable, experienced and who works for you — not just their commission. Here are the top 3 reasons why working with a local agent matters:
Market knowledge. Moving to a place you’ve never lived before? A local agent can be your guide to learning the intricacies of each community, schools, restaurants, local amenities, weather patterns, commute times, etc. Further more — in Marin County, property values can change from one neighborhood to the next and a local agent can give you the confidence that your purchase is a wise investment for resale value.
Experience. Having a reputable agent can make your offer stand out in a multiple offer competition. Why? Local agents do business together often and have built trust over the years for bringing qualified buyers and are known to close a smooth transaction. Simply put — unknown agents come with unknown risks for sellers and could prevent your offer from being selected. Since home buying strategies change quickly, you want an agent with close connections to other agents to boost your success rate.
Access to both on and off-market inventory. In Marin County, 20% of the market trades without ever hitting the public MLS for a variety of reasons. How does a buyer get access to secret homes for sale? Local agents who network with their colleagues to find off-market homes (a.k.a. pocket listings), and coming soon opportunities for their clients. Own Marin Fun Fact: Our team sells the most number of off-market homes in the county year after year and since 2018, we’ve sold 128 homes that never hit the public marketplace.
So do your research and make sure you find the right agent who’s ready to go the extra mile to help you win your dream home.
FIND A LOCAL, REPUTABLE LENDER
You might not think a local lender makes a difference, but it really does. Just like working with a local agent, having a reputable lender can also give sellers more confidence in your offer and most importantly, financing. Local lenders understand our contracts and the pace of the market. They’re know the importance of drafting a pre-approval letter at a moment’s notice, even on the weekends, to help you get your offer in. Additionally, their relationship with the listing agent will help your offer stand out as one with low risk.
Get this done early! Often times, when a property hits the market it could already be too late if you’re not pre-approved for a loan. But, these days, it’s better to go even one step further and get underwritten. This means the bank has dug even deeper into your finances and has already determined how much money they are willing to loan you when the time comes. Getting underwritten also gives you the ability to confidently remove your loan contingency to further improve your offer.
We’re happy to connect with you Marin County’s top mortgage lenders any time you’re ready. No matter what, the process of securing a loan can take some time, especially if you have complex finances so, if you start the process early, you’ll have that much of a head start on the competition.
Searching with the right expectations
IGNORE THE LIST PRICE
As we’ve mentioned, homes in Marin are almost guaranteed to sell above the list price — often between 5 and 25 percent more depending on the town, neighborhood, square footage and age/condition of the home. At a median price of over $1,800,000 a Marin home’s sale price could be anywhere from $100,000-$500,000 or more above what the list price was.
So when you’re looking for homes, we recommend you look for homes that are below your budget by at least 5 percent. That way, when it comes time to make an offer, you can join the party and offer more than the list price along with your competition.
TOUR A LOT OF HOMES
If you’re unfamiliar with the area, touring is how you get a better feel for neighborhoods, streets, price ranges, layouts, proximity to local amenities and commute times. If you start with too narrow a focus, you might not find the right house for you so get out there and explore! Open houses are a great way to get your feet wet. The trick is to keep an open mind without expecting to find the home you love right away.
MUST-HAVES VERSUS NICE-TO-HAVES
We already know that there aren’t enough homes to go around, so keep your mind open to different versions of your ideal home. It helps to figure out what you can’t live without — we call these your non-negotiables — so you can let go of some of the other details.
If you know you want a certain square-footage, you may need to compromise on the budget. If you know you want to be in a certain neighborhood, you may need to buy an older home. The more detailed you can be about what your must-haves, the more you can compromise elsewhere.
Write a winning offer
WAIVE CONTINGENCIES
It’s not necessarily a guarantee that you’ll win your bid just by being the highest one. Winning offers come down to price and terms. Waiving certain contingencies can give buyers an advantage because it makes the sale all that much more simple for the seller. We always want you to feel protected in the purchase of a home so it’s important to talk to your real estate agent about disclosures, inspection reports, and insurability to help determine what contingencies you feel comfortable waiving so the seller knows the sale will close without any speed bumps.
ACT FAST
With all this competition, homes can get snapped off the market in a matter of days. Sometimes, even, in a matter of hours. Most listings have an offer review date, but particularly popular or valuable homes won’t even make it to the end of the offer period.
Once you know you’ve found the home you love, act quickly. Your real estate agent should be able to get an offer to the listing agent right away and if you’ve followed the previous steps, there shouldn’t be any reason to slow down now!
GIVE THE SELLER CONFIDENCE
Sellers know they’re going to get top dollar for their home in this market, no matter what. Your offer will have to stand out somehow. One of the best ways to stand out is to give your seller certainty that the sale will go through without a hitch.
Sales can—and do—fall through for a number of reasons from financing snafus to cold feet. If you’ve been underwritten by your lender, your financing is all but guaranteed. Another way to provide your seller financial certainty is to make a cash offer.
With developments in real estate and new, innovative companies in the field, you don’t need all the cash yourself to make a cash offer anymore. We’ve got all the resources you need to make a strong, cash offer to give you confidence that your bid will be the one that stands out.
The bottom line
It’s tough out there if you’re a homebuyer. Fierce competition, rising prices and declining housing inventory make buying a home seem impossible. But it’s not! There are simple, common sense things you can do to give yourself a leg up and make home offers that beat the competition without breaking the bank. When you’re ready, Own Marin will be there for you to help you from home search to home sweet home, every step of the way.
Ready to get started?
Connect with an Own Marin team member and let’s go get your home.