Anatomy of a sale (in today's market)
What is a sane approach to the buying process in Southern California?
First, let's look at what is happening in our real estate market. We have primarily two types of sales taking place bank owned and short sales. Bank ownedor other wise known as REO property is just that the bank now owns the house. These are the new normal transactions in Riverside county California.
As a buyers agent I'm always relived when my client wants to view a bank owned home. Typically these negotiations are handled like they were back in 05'. What is interesting is the fact that there is usually an offer already on the table which is very good for the seller (bank). How do we do we handle the competition? We put forth our best offer and we move on and don't look back if we get beat out. After all, there are more properties than there are buyers. I remember the shift in our market that took place in the middle part of 07'. We started to see multiple offers again. This was the new sellers market.
Now for the big butt but, but what about short sales, don't they take a lot of time? Yes they do. Short sales typically take longer than REOs (bank owned) properties. Sooo here is how we handle them:
•1. I tell me my clients what to expect on the front end so they are not as disheartened if they should not succeed in acquiring the property.
•2. My approach is to find at least three properties that my clients positively love. (this is possible here in Southern California)
•3. I inquire via the listing agent as to the status of the short sale. I ask questions such as: how long has the property been in default, how many mortgages are on the property, are the current owners occupying the property?
Keep in mind that just because there is a short sale going on doesn't mean that the home owner has lost any rights. The only thing that they are not in control of is what price the holder of the note will settle for.
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