Even though the Irvine real estate market is considered one of the best in the United States, this privileged status alone doesn’t guarantee a real estate transaction will be successful. Active housing markets are not impervious to complexities and intricacies. In fact, a heightened state of activity can cause buyers and sellers to rush through the transaction process. The key to avoiding mishaps, bottlenecks, and costly mistakes at the closing table is to make note of the following strategies.
1. Retain a Seasoned Real Estate Agent
Sellers who believe they can prevail in the hot Irvine market with a “for sale by owner” transaction risk leaving the closing table with 13 percent less than they could have realized with a real estate professional. Buyers should think of themselves as potential real estate investors, which means entering the market with proper representation from a knowledgeable real estate agent in Irvine.
2. Formulate Realistic Goals
It’s better for both buyers and sellers to lower their expectations as they enter the market. The ultimate goal should be general instead of specific. For example, purchasing a three-bedroom home in a nice Irvine neighborhood for less than $900K is more realistic than a Mediterranean-style estate in Quail Hill for less than a million. Sellers shouldn’t expect to see bidding wars on every listing even when demand is high.
3. Prepare to Contest the Appraisal
Closing a real estate transaction is contingent upon the result of the appraisal. Mortgage lenders may stop the process if the appraised value throws off the loan ratios, and either buyers or sellers may shift their negotiating tactics if the value isn’t within a certain range. For this reason, all parties in a real estate transaction should be prepared to contest an appraisal if needed, which means having the funds available for a full valuation inspection as well as a list of appraisers.
4. Manage Positional Bargaining
Not everything related to a property transaction needs to be based on offers and counteroffers. Although this is the type of positional bargaining favored by United States President Donald Trump in his book The Art of the Deal, effective negotiation in a hot real estate market should include mirroring and mutually beneficial outcomes. Getting to know all the goals of a buyer or seller can steer the transaction in a positive direction.
5. Present Narratives Before Closing
Buyers and sellers are bound to be more receptive to offers presented as stories. Enjoying narratives is part of human nature, which is why seasoned real estate agents insist on staging properties to attract certain buyers. In a housing market such as Irvine, where financially qualified prospects are abundant, one of the best ways to spark a bidding war is to stage the property according to trends in interior decoration. As for buyers, narratives should be centered on mortgage preapproval documents and attractive credit profiles.
Whether you’re buying a condo in Quail Hill or selling a townhome in Woodbridge, Irvine homes for sale stand a better chance of a successful closing with the help of a trusted agent. Call Irvine Residential Living today at 714-454-6304 to speak with a qualified agent today.