I know a lot of buyers may beg to differ, but honestly, there are so many good deals out there, I am personally frothing at the mouth - okay, that's a little gross - but seriously, I have to pass on those great buys day after day after day - due to the same reasons buyers today are struggling - affordability!
However, the media reports of homes in CA now reaching an all-time high of affordability are actually true! In Thousand Oaks - and surrounding communities - we are seeing homes priced - and selling - for 2003 prices! Whodathunkit?? Not me, that's for sure!
However, short sales and foreclosures have essentially set a new price for our market - and it is a great place to be - if you are a buyer of course!
So, how do we capture these steals? Well, that's the tough, million dollar question. There is a ton of competition - a lot of people pulled their cash out of the stock market - and are now investing it in the best possible place - the real estate market! Where else can you earn approx. 6% a year at minimum? Most banks arent certainly offering that type of an ROI!
Now we know that most of the buyers today tend to be investors - you as a buyer are competing with an all cash buyer who doesnt tend to care about the carpet and paint; they will sink a few grand into the home, stick a tenant in for a year and make a great deal of money the next time around - which a lot of those financial wizards are predicting will happen by the end of this year or very early in 2010.
What can I do you ask? Well, first, having an agent who knows the market is just one part of it; having an agent who lives in the area is also essential. Okay, so your neighbor, your brother in law's cousin, etc, are all agents - you have lots of advice coming at you, right?
The key is simple- you need to look at the home and see the value in it at the listing price - or in most cases lately, 10 or 15k higher than the listing price. I also supply my clients with comparables from different time periods - 2001 through 2003 as well as 2004 through 2006 - you as a buyer need to see where the homes value was, where it went and I then help you calculate the math at where it will go. Once you see this, you can then determine what the right price is for you. I can guide you of course, but ultimately, you are the one writing the check each month, and sending it to the bank, not me.
Another important factor is to get your pre-approval from a well known financial institution or loan officer in writing. Make sure they have reviewed your credit, your income, assets as well as sourced all of the money you have; too many times - even in this market which is maddening - loan officers dont want to take the time to fully review a buyer - and you find out while you are in escrow and could loose your deposit, that your loan officer didnt quite do all of his/her homework. That's very frustrating - don't worry I have some amazing loan brokers I can refer to you - and it slows down the entire process.
It is extremely important to know - prior to going out and even looking - what you are qualified for! If you have credit issues, let's figure out what those are NOW - not when you are under a contract. Keep in mind as well that if you are looking to purchase a home at $350k, you can purchase using FHA or Conventionall - rates fluxuate on both - and the costs also differ greatly - you put down either 3.5% for FHA or 5% for Conventional - but the credit score requirements are very different. If you are being gifted funds, we need to know - via a letter - where they are coming from and so much more! Bottom line? Get your ducks in a row - FIRST - so that you dont have your dream home taken back from you!
Again, there is so much advice I would love to share with you; please feel free to call or email, anytime! And don't forget - I also assist with loan modifications and short sales - there is hope! If you know of anyone in distress, please have them call or email me.
Best,
Suzanne Grace
Comments(0)