Case Study: How We Beat 5 Offers on a San Carlos Home by Solving the Insurance Puzzle First

The Challenge: The Perfect San Carlos Home with a Hidden Problem

A client, a tech couple I had pre-approved for a mortgage, found their dream home in the hills of San Carlos. It had everything: great schools, canyon views, and a renovated kitchen. In a typical market, this home would have had 15 offers. But in late 2025, it only had a handful. Why? The property was located in a High Fire Hazard Severity Zone.

Other buyers and their agents were spooked. They saw the location on a map and assumed insurance would be either impossible to get or astronomically expensive. They were writing offers riddled with long insurance contingencies, or worse, not writing at all. The fear of the unknown was depressing the home’s value and scaring away competition. For my clients, this wasn’t a problem; it was an opportunity.

The Three-License Solution: Turning Risk into Opportunity

As a Real Estate Broker, Mortgage Officer, and Insurance professional, my job is to connect the dots others miss. Instead of running from the issue, we ran directly at it. Here is the exact three-step process we used to build a bulletproof offer.

Step 1: Real Estate Strategy – Quantify the Fear

The listing agent confirmed our suspicions: other potential buyers were hesitant about insurance. We knew that if we could solve this piece definitively, our offer would rise to the top. We decided to submit a very strong offer, slightly over asking price, but our main competitive advantage wouldn’t be price. It would be certainty.

Step 2: Insurance First – Removing the Unknown

Before even writing the offer, I leveraged my insurance license. I immediately got my clients a formal quote for the California FAIR Plan (for fire coverage) paired with a Difference in Conditions (DIC) policy from a surplus carrier (for liability, theft, water damage, etc.).

• The Result: The combined annual premium was $7,200.
• The Insight: Yes, this was higher than a standard $2,000 policy in Foster City or San Mateo. However, it was a known number. The fear was gone, replaced by a line item in a budget. We knew the exact cost and could proceed with confidence.

Step 3: Mortgage Lock-In – Bulletproofing the Offer

With the exact insurance premium in hand ($600/month), I put on my mortgage hat. We immediately updated my clients’ Debt-to-Income (DTI) ratio. Their strong income meant this additional cost was easily absorbed and kept them well within the lender’s guidelines. We submitted this updated insurance figure to the loan underwriter along with the purchase contract. The lender had the complete, accurate picture of their housing costs from day one, eliminating any chance of a last-minute surprise.

The Result: Keys in Hand While Others Were Still Researching

We submitted our offer with a cover letter explicitly stating: “Buyer has secured a full insurance quote for the property and the monthly cost has been approved by the lender.”

The seller had a slightly higher offer from another party, but that offer carried a 17-day contingency to investigate insurance. The seller’s agent knew that was a huge risk. They could accept the higher offer only to have the buyer back out two weeks later. Our offer represented a certain close. They accepted it immediately.

My clients are now enjoying their beautiful San Carlos home. We turned a market-wide fear into a tactical advantage by integrating real estate, mortgage, and insurance into one seamless strategy.

Alan’s Pro Tip

When you get a California FAIR Plan quote in a high-risk area, it’s not enough to just get a price. You must insist that the quote includes a “Dwelling Replacement Cost Valuation” report. Mortgage underwriters are required to see this specific valuation to ensure the home is insured for the proper amount. Simply getting a basic premium quote without this report will cause major delays in your loan closing, as the lender will halt the file until it’s provided. Get it upfront.

Disclaimer:
The market trends, interest rate data, and policy interpretations provided in this article are for informational purposes only and do not constitute legal, tax, or investment advice. The real estate market and mortgage rates are subject to rapid change. Please contact us directly for the most current information and personalized advice.

Real Estate and Mortgage Services provided by:
Golden Gate Realty and Finance Inc.
CA DRE License #02361979 | NMLS #2776762
Principal Broker: Alan Wen | CA DRE #01812220 | NMLS #356521

Insurance Services provided by:
POM Peace of Mind Insurance Agency
CA DOI License #0N02495
GA Principal: Alan Wen | CA DOI License #0E21429