As the market heats up it is becoming more and more clear that buyers are having a tough time getting offers accepted. One example is Brian Garlin. Brian's wife is active duty military and was on deployment during much of the property search and escrow process. After losing out on several multiple offer OVER-BIDS during their five month search, their offer was finally accepted. Brian's agents, Gordon and Diane Kane with RealEstate.com, REALTORS, said, "It is tough to compete with cash investors when you have VA financing. VA is not doing any favors with such stringent standards on property condition which eliminates many first time buyers and properties priced for first time buyers. With the downturn in prices, many first time buyers are jumping in only to find the process frustrating, to the point of giving up." Fortunately for Brian and his family, they had true professionals like Gordon and Diane helping them to understand the market, what the expectation was, and how in the long run it would pay off. Check out the video here:
The silver lining of the market downturn has been the opportunity for first time buyers to purchase a home. I blogged about this recently and explained also that first time buyers are buying for the right reasons. They desire a home for their family, not an ATM machine to max out their equity to buy a boat, RV or other toy. The $8000 first time buyer federal tax credit and the $10,000 California state credit for new construction purchases has certainly helped, but more needs to be done. Many real estate insiders see these credits as band-aid fixes for a mortgage system that needs major overhauling. Even after the influx of Housing Stimulus money many banks are still "frozen". I'm not advocting throwing open the doors to the vault like they did previously, but make it easy for QUALIFIED BORROWERS to get loans.