Many buyers are finding it difficult to purchase a home because they get outbid by numerous other buyers wanting the same home. This trend is increasing dramatically in Los Angeles below the $400,000 price range.
An article at the L.A. Times documents what many dismayed home buyers are experiencing which is opposite of what you hear in most of the major news stations- that the market is still on a downturn.
Being in this industry FULL time (100+ hours a week) allows me to truly immerse myself in the market statistics to reveal a more realistic picture for my clients. When they ask me if we can find a home at 50% off, I explain to them that most homes for sale are already 50% of what they were 4 years ago...then I show them the statistics to prove this point.
When looking for homes to purchase, your best strategy is to be realistic about MARKET CONDITIONS and MARKET COMPARABLES. This industry used to be driven by sellers about 4 years ago- now it's driven by APPRAISALS. If you want to purchase a home of your dreams, you NEED to know what it will appraises for so you
1) Can understand if the listing is below market value- at which point it will have multiple offers.
2) Can be sure that your offer doesn't go over appraised value- at which point your loan will not fund unless you bring in the monetary difference between what the appraisal stated and the asking price.
3) Keep your feet on the ground so you don't get caught in the hype of bidding wars.
Below is a link to the article in the L.A. Times.
I hope this article helps you get into the home you truly desire!
Paul Aragon was voted one of the top realtors in all of Los Angeles County by the 2008 Daily News Reader's Choice Awards.
He gladly gives free advice on real estate transactions, contracts, and negotiating the best deal. He can be reached a www.AragonEstates.com or at Paul@AragonEstates.com
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