Outbid by all cash offers!
I have made a few offers recently on homes in San Jose and surrounding areas. I have offered about 200-300k over asking (total ~$1.1M-1.5M). However, I keep getting outbid by these all cash offers. Who are these people that are able to offer ~$1.5M in cash! What kind of work do they do? I feel I make good money in the Silicon Valley but certainly not enough to pay ~1.5M in cash. I have already been outbid 5 times with these all cash offers! Makes me want to give up!
Foreigners or hedge funds who think that sf Bay Area is a great investment and or diversification opportunity
A non contingent with quick close offer is almost as good as cash. If your offer is at least 2-3% higher than highest cash offer you would get the place. Just need to up your price
Lots of Chinese cash buyers.
China is limiting money going out for foreign investments. Might be just a lot of DINKs (double income no kids) who both work for FAANG cashing out their stock over all the years.
Lol, that doesn’t work. I’ve seen first hand 2m transferred to buy a house here in 3-4 days and several chunks.
I have a property which Zillow says it's worth 950k, offer me 1.2M and you may get it.
Address or it doesn't happen lol
Drug cartels
How do the Chinese have so much cash
Adjust your expectation, don’t waste your time pondering “if it’s worth it” shit, if you want to buy, give it all the 1st time. There are a lots of rich people and historically Silicon Valley properties, while objectively speaking mostly piece of shit, are excellent investment opportunities. Don’t waste time think you are smarter than everyone else. Take decisive action. Otherwise 6 month of hesitation would mean you get priced out of the area you want. I saw countless examples and they never listen for some weird reason
Time to dump your agent and get a new one who knows the market better.
Sounds like you are in denial stage... sooner you get to acceptance that 25-50% above asking is the norm the better off you are... yes it will hurt and house will look like shit. But realize that after 10 rejected offers it will look better
I got timid when I did my first offer and got humiliated, then went on a oversea vacation, fucked around for a while after came back, found place I want went up 300 to 500k and had to bite my teeth and pay up. This place 6 month literally can cost you half a million more
This is why you never buy a house on the market. Someone will always have more cash.
Eh? So the alternative you recommend is, a tent?
Uh what? No, the alternative is buying off market so there is no competition.