Buying a Humboldt County Short Sale or Foreclosure as a First Time Homebuyer takes patience, preparation and a little taste for risk.  Most of the first time homebuyers I have been actively working with can afford a home between $199,000 to $240,000. Folks this is the lower end of the Humboldt County Real Estate market and most homes that are for sale in this price range tend to be in Eureka CA or Fortuna CA.  Not to mention, most are either under 1000 square feet in very good to excellent condition or they need work quite a bit of work.

Although there are loan products available to Humboldt County First Time Homebuyers who haven't saved 10 to 20% downpayment, like the CA Rural Housing Loan, FHA loan, or 95% financing (where you put 5% cash down towards your home) it is challenging to buy a short sale or Bank Owned home (a home that the bank has already foreclosed on and is trying to sell on the market).  And in most circumstances I wouldn't recommend a First Time Homebuyer to buy one of these homes for their first real estate buying experience.  Most of these situations are frustrating for new homebuyers. There are a lot more hoops to jump in these deals and there is some risk involved.  Short Sales can take months to close and there is no guarantee the short sale will close.  And most of my first time homebuyers aren't willing to wait.  So we keep looking.

Unfortunately most of the homes I'm seeing in our Humboldt County Real Estate market in the $199,000 to $240,000 price range these days are short sales or bank owned properties.  Not all , but many are.  And there are definitely some homes that sell for "Good Value."  But you have to be ready to jump on them and be prepared to compete with other buyers who are also looking for the best home possible in this price range.  Just expect that there will be buyer competition.  So how do you as a Humboldt County First Time Homebuyer prepare yourself so you're ready to jump on that "Hot" Humboldt County Short Sale or Foreclosure home?

1) Find an agent who you can trust and work with - if you want a shot at some of the good homes that come up in this price range in our Humboldt County Real Estate market, then you want to work with an agent you can trust, who can guide you through the sale.   Remember, you are not the only buyer wanting a fabulous house in this price range.  So when one pops up and they do from time to time having a good agent by your side can really make a difference.   Because these homes will get offers within days if not the same day they go on the market.

I've had clients who waited a day or two to decide to write an offer and by the time they decided to go ahead - the listing agent already had 3 offers.  So you have to move to writing an offer quickly.  Plus a good agent can assess whether the home is truly a good deal or not, based on past sales, pendings, active competition and taking in to consideration the rate the market is falling, percentage wise.  All of this information is important when determining a good asking price to offer.  I've seen a few home recently that were "good value" sell for close to list price or over.  It does happen even in this "buyer's market."

2) Find a Lender You can work with- Ask your agent for 3 lenders, interview them and choose one. It's important to have your financing in order before you start looking at homes so when you find the right house you have your ducks in a row.  You want to know how much you can comfortably afford before you start looking for houses.

3) Try to be flexible with your time to see new houses that come on the market - As I work with several first time home buyers in the above price range I've noticed that certain homes - ones in excellent condidion, priced competitvely or significantly below market value are usually getting offers the same day they go on the market or within a few days of going on the market.  Rarely are we the only ones looking for that gem on the market.  So it's best to get in as soon as you can to see the house.  Preferably the same day the "For Sale" sign goes up.

4) Writing the Offer - make sure to sit down with your agent and discuss what you can ask for when it comes to bank owned properties or short sales.  The situation is quite different from your standard sale, because you're not necessarily dealing with a home owner with emotions.  Your dealing with a bank - who isn't emotional - sometimes that can be a good thing. and sometimes not.

 If you don't have the stomach for buying a Humboldt County Short Sale or Foreclosure (Bank Owned) home - then maybe sticking with regular "retail" homes isn't such a bad idea.

Here are articles about Humboldt County Short Sales and about the buying process in general:

I'm Not Here To Sell You a Home In Humboldt County CA

Getting Financially Ready to Buy Your Humboldt County CA Home

Humboldt County Short Sales Update in Humboldt CA

If you're interested or thinking about buying your first home in Humboldt County CA, I'd be happy to meet with you and discuss your situation.

Jessica Bigger Give me a call today! 707-496-5770

Disclaimer: The information provided herein is supplied by several sources and is subject to change without notice. California Coast Real Estate Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on California Coast Real Estate Blog represent the opinions and ideas of the author(s). California Coast Real Estate Blog does not express the views of RE/MAX Humboldt Realty or those of the broker.

Copyright 2009 Jessica Bigger.  All Rights Reserved. *Humboldt County Short Sales-Foreclosures and the First Time Home Buyer*