What's New

STRATEGIES FOR BUYING DIFFERENT TYPES OF HOME SALES

This is a great time to buy a home, but not necessarily a "buyer's market."  Because of the current low prices and low interest rates, there are more buyers than properties available  - both here and throughout Southern California.  Most buyers have to make several offers above list price before they are the lucky one!  Here are some strategies to give you a competitive edge.

First, you need to have full loan approval.  Vicki can refer you to a good lender who is honest and efficient.  Get all of your paperwork together -complete bank statements, pay stubs, and tax returns.  Ask for a copy of your credit report (I'll explain later.)  You don't stand a chance of getting an offer accepted without loan approval.   

STANDARD SALES - also called equity sales.  If the homeowner has been realistic in pricing the home (and sometimes they are not), these homes sell very quickly, and the price is also often bid up.  You need to give your very best informed offer.  My last standard sale sold for almost $16,000 above list price with five back-up offers.  When viewing the home, it is important to be very pleasant to the owner if he/she is home.  They care about who will be living in the home that has so many memories for them.  They may sometimes choose an offer based on who they like as much as who is paying the most.

SHORT SALES. A significant number of listings today are short sales.  If you like the home, make a good offer, but don't get your heart set on it.   Because of the low inventory of homes for sale, even short sales are receiving multiple offers.  Most short sales take 5-7 months for bank approval, and some sales are never approved. After making your offer,  keep looking at homes and keep making offers until you're in escrow.  If the seller or bank chooses your offer but you've changed your mind, you simply withdraw your offer. There is no risk to you.  You may be bidding against some of the same people on every property. If the bank approves your offer, then expect a 30-45 day escrow.  If you are hoping to take advantage of the Federal Home-Buyer Tax Credit, you must be in escrow by April 30^th, 2010, & then close in 60 days.  Believe me, if you put in several offers today, it could take at least that long before you close escrow. 

FORECLOSURES - also call bank-owned or REO's (real estate owned).  These are coming up sparingly lately.  They often sell well above list price in 2-3 days.  You have to act fast.  Don't wait for the weekend!  Quite often, the bank will require that you get your loan preapproved through them.  This helps them to be sure that you're qualified, but they are also hoping to get your business.  You need to keep all of your paperwork together (everything you gave to your original lender plus their preapproval letter and your credit report) and be ready to fax or email it to their required representative. Hopefully, they will accept your credit report so that you don't have to have it run repeatedly.  Buying a home in this market it a lot of work - be prepared!  There is a lot of talk about the "shadow inventory" of the banks.  Are they holding on to properties so that the scarcity keeps prices up?  Does it take that long to fully process a foreclosure?  Will there be a lot more foreclosures on the market before long?  We'll see  . . .

Contact Vicki Stanton, 714-809-5787 or email