March 2nd, 2011
Over the past several months, cash buyers – often investors – looking for bargains have been purchasing homes in San Mateo and Santa Clara counties at a high rate, according to a San Jose Mercury article. This activity lowered the average sale price in San Mateo County, and kept it level with last year’s average in Santa Clara County.
The real estate information service DataQuick stated that the area home sales are dominated by distressed homes and these cash buyers, who made up about a quarter of home buyers in January in both counties.
“What’s most interesting is how active the investors were through the holidays and into early January,” said Andrew LePage of DataQuick in the Mercury story.
Buyers in the area are on the bargain hunt as well, with multiple-offer real estate transactions being common of late. Foreclosures have allowed some buyers to get in to the market, and the low prices fuel the competition fire.
It is hard to compete against a true cash buyer when bidding on a property. To stand out when making an offer, make sure you get your loan pre-approved properly, essentially turning yourself into a “cash buyer.”