With the coming of spring, buyers are making a beeline back to the real estate market.  This spring, they are shocked by two big surprises.

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First, the Bay Area real estate market is now extremely competitive, with swarms of eager buyers circling a handful of inventory.  It’s almost reminiscent of the heady boom years of 2005-2006, with packed open houses and lines out the door for prime properties.  This is quite a reversal from the buyers’ market that had quietly ruled for four years, up until as late as February of 2012.

Then, for the buyers who brave the crowds, they’re faced with a second surprise — all cash offers.  Buyers who use financing quickly learn that in multiple offer situations with all cash offers, they are at a major disadvantage.  Even aggressive bids significantly above asking prices can lose out to cash offers.  That can be quite discouraging, if not devastating.

But, there’s hope.  There are strategies to win against cash offers.  Before you toss your pre-approval letters into the ring, let’s first examine the pervasiveness of all cash deals in

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What if you really like one of the price points or areas with a large number of all cash offers?  What can you do?  Stay tuned for Part 2, when we discuss winning strategies in the face of all cash buyers.  Or, if you can’t wait, give us a ring or send us an email.