Alameda Homes & Real Estate for Sale

Leading You Home !

Chuck & Nancy's Real Estate Newsletter

To Our Friends and Clients,

We hope you find this article helpful and informative. When it is time to sell call us for the full service you deserve. We are your Real Estate Experts with over 27 years of combined experience.

Backup offers give sellers a Plan B

Every seller's dream is to receive offers from more than one buyer. Although multiple offers were scarce last year, in some markets and price ranges listings that are priced right are receiving multiple offers, particularly in the low-end foreclosure markets.

Most sellers are inclined to accept the highest-priced offer, but this isn't always the best offer. For example, a seller of a hot property in the hills above Oakland, Calif., received six offers. The two highest offers were close in price, but the seller decided to accept the higher of the two. Fortunately, the seller's agent suggested countering the next best offer for backup position.

The buyer in primary position had 10 percent cash for a down payment. Some issues came up during inspections that were going to be costly to repair. The buyer didn't have more cash to pay for the repairs, so he asked the seller to lower the price. The seller said no and the backup offer became the primary offer.

The backup buyer made a large cash down payment; he wasn't cash-strapped like the first buyer. He had enough cash to pay for the repairs. In this case, the backup offer, which wasn't originally the highest offer, turned out to be the best offer both in terms of price and financing.

Before making a decision about which offer to accept, it's important to review all of the terms and conditions of the contracts, not just the price. In another case, a seller received two offers. One was quite a bit higher than the other. After reviewing the highest-priced offer, it turned out that the price wasn't as high as it seemed.

The agent representing the buyers was from out of the area and didn't know how fees associated with a home sale were customarily shared between the buyer and seller. In terms of net proceeds to the seller, the offer price was $10,000 less than it would have been if the offer included an allocation of fees that was according to local custom.

HOUSE HUNTINTG TIP: Sellers who receive multiple offers often are tempted to counter for a higher price, even when the offer prices are for more than the list price. This is risky. In one case, a seller received two offers. The highest-priced offer was for more than the list price. The seller countered this offer at an even higher price. The buyer thought the seller was unreasonable and withdrew his offer. The seller ended up selling for much less. Don't let greed rule your decision-making.

The financing proposed in the offers should be scrutinized carefully. In general, the more cash a buyer puts down, the better. Recently a seller reviewed two offers on her house. One of the buyers offered to make a 40 percent cash down payment. The other was putting five percent down. It's far easier for a buyer to get loan approval in the current market place if the down payment is 20 percent or more of the purchase price.

Close of escrow can be an important factor for some sellers. It can be beneficial for a seller to accept a lower price if the buyer can close quickly. This is particularly so, if the sellers have already purchased and closed on another home.

An offer made contingent on the buyers' home selling is riskier than an offer from a buyer who doesn't need to sell in order to buy. Depending on the seller's situation, it might be wise to consider a lower-priced offer that is not contingent on a sale.

THE CLOSING: It's a good idea to counter the next-best offer for backup position in case the first deal falls apart.

DianHymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author.

RECIPE BOX

Smoked Salmon Chowder

"Smoked salmon, corn, and potatoes liven up this creamy chowder that absolutely pops with flavor! It's balanced, yet intense.”

Prep Time: 20 Minutes

Cook Time: 1 Hour

Ready In: 1 Hour 20 Minutes

Servings: 6

Ingredients:

10 slices bacon, chopped

2 large onions, finely chopped

4 stalks celery, finely chopped

3 carrots, finely chopped

5 green onions, finely chopped

1/3 cup chopped fresh parsley

1/2 cup water

6 cups fish stock salt to taste

1 1/2 tablespoons ground black pepper

1 1/2 tablespoons dried dill weed

8 red potatoes, cubed

1 cup butter

1 cup all-purpose flour

5 cups milk

3/4 cup white wine (optional)

1/4 cup lemon juice

1 1/2 pounds flaked or chopped smoked salmon

1 1/2 cups frozen corn kernels

Directions:

1. Place the bacon into a large pot set over medium heat. Cook for a few minutes to release some of the drippings, then add the onions and celery. Cook and stir until bacon is crisp and onions and celery are tender.

2. Put in the carrots, green onions, and parsley and then pour in the water and fish stock. Season the soup with salt, pepper and dill. Cover and simmer over low heat until carrots are tender, about 15 minutes. Add the potatoes and simmer for another 20 minutes, or until tender.

3. Meanwhile, melt the butter in a small skillet over medium heat. Stir in the flour until smooth. Continue to cook and stir until the mixture is light brown. Pour in a little bit of the milk to thin the roux, then pour it into the pot with the vegetables. Pour the rest of the milk into the pot and heat through, stirring constantly.

4. When the soup has thickened slightly, stir in the white wine if using. Mix in the lemon juice, smoked salmon and corn. Cook over medium heat until hot but not boiling. Ladle into soup bowls to serve.

OUR RECENT SALES

1037 San Antonio Ave- We represented the Sellers

737 Haight Ave- We represented the Sellers

2429 Buena Vista Ave- We represented the Sellers

2421 Buena Vista Ave- We represented the Sellers

427 Lagunitas #302, Oakland - We represented the Buyers

1115 Via Alamosa- We represented the Sellers

3042 Windsor Drive- We represented the Buyers

14701 Juniper St, San Leandro - We represented the buyers

RECENT SALES IN ALAMEDA

Address	BT	BR	Bath	PB	LP	Close Date	Sq.Ft	Yrblt
2031 Otis Dr	CO	1	1	0	$215,000.00	1/26/2010	817	1968
1825 Shoreline Drive	CO	1	1	0	$239,000.00	1/13/2010	621	1968
2031 Otis Dr	CO	2	1	0	$279,900.00	1/8/2010	972	1968
430 Cola Ballena	CO	2	2	0	$484,000.00	1/15/2010	1610	1971
1560 Lincoln Unit C	DE	1	1	0	$230,900.00	1/12/2010	517	1920
1554 4th St	DE	2	1	0	$499,000.00	1/15/2010	1078	1915
2815 Otis Dr	DE	2	1	0	$459,000.00	1/8/2010	1152	1930
1533 Mozart St	DE	2	1	0	$350,000.00	1/6/2010	1095	1890
1547 B Santa Clara Ave	DE	2	2	0	$575,000.00	1/8/2010	1325	1929
1428 Union St	DE	3	2	1	$825,000.00	1/6/2010	2375	1902
801 Park Street	DE	3	2	1	$509,900.00	1/15/2010	1747	1992
1367 Hansen Ave	DE	3	1	1	$679,000.00	1/12/2010	1620	1954
16 Callan Pl	DE	4	4	1	$1,850,000.00	1/8/2010	4251	1994
201 Creedon Cir	DE	5	4	1	$1,599,000.00	1/8/2010	3461	1998
653 Centre Court	TH	2	2	1	$479,000.00	1/13/2010	1664	1982
1137 Verdemar Drive	TH	3	2	1	$439,000.00	1/21/2010	1584	1968
1041 Camino Del Valle	TH	3	2	1	$365,000.00	1/5/2010	1584	1967

Residential Income

Address	LP	BT	Close Date	Lot Sq.Ft	Units	YrBlt
2140 Clinton Ave.	$995,000.00	OTHER	1/15/2010		5

* Why do we report these sales from other a month past? Some closings are not reported in the Multiple Listing Service (MLS) until weeks after the closing. The delay is to provide you with the most accurate information at the beginning of the month. If you would like the status of a current listing you can email or call us and we will provide you with it's current status.

If you are thinking about selling and would like a free market analysis of your home, please call us at (510)749-9866 or email us at cbianchi@hbrhomes.com