Are you are first time home buyer? Here are some answers to the questions I hear frequently...
First thing you should do -- contact a great Realtor and they should put you in touch with an equally GREAT lender. Why? So you know exactly how much you can afford to purchase.
In today's REO - Foreclosure ridden housing market you should also be prepared to get a pre-approval from several lenders depending on how many homes you decide to write offers on . Why is this necessary?
Most large institution banks (Countrywide, Chase, Wells Fargo, Indymac, etc) will require a pre-approval from their bank. The reason for this is 2 fold. 1) They want to be certain the buyer is viable to purchase the asset they just acquired. 2) The bank would love to recover some of their loss by suppling the new buyer with a new loan. Usually the buyer will be offered special options for purchasing and financing through the lender that is selling the home.
Be prepared for a bumpy road - nothing in this market is clear cut, find someone you can trust to help you through it all.
Here is what I see in the Tracy and Mountain House, CA housing market.
We have 90% of the homes for sale in our market are distressed, either short sale or foreclosed homes. In order to capture the buyers homes are coming on the market priced lower and lower every day.
Once the property is on the market, the home gets multiple offers and sells for over asking.
Then for the appraisal -- the home doesn't appraise, because everything else is priced lower.
Example:
Home Priced at $210,000
Price accepted $221,000
Appraised at $208,000 -- the bank sells the property for $208,000.
We are now in a situation when short sale clients are calling appraisers hoping for a property to appraise as low as possible, and REO properties not being able to appraise any higer than the list price.
So where does the spin stop?
Here you go stat people- you tell me. There are 645 homes on the market as of October 1.
There are 487 pending -- yes I got that right--- we have a 1.5 month supply of houses.
Is there competition for these homes, you bet.
Can I under bid to get a home, I mean I've heard the news, housing prices are dropping.... is it true?
The answer is simple - yes and no. Prices have dropped and now people have to bid over asking to get the house they want. I'll bet you didn't hear that on the news.
So how do you get a home. Hire a great REALTOR that will work for you. Most homes are being "pre-sold" agents know they are coming and they are snatched up the day they go on the market.
Don't miss this opportunity to grow you wealth.
Do you love youth sports -- I do. So if you're looking for some free entertainment, head out the Tracy Little League fields and watch the All Stars play ball.
Tracy American and National Little League will be hosting the Section 3 9/10 and Major tournament. This tournament will start next week. Teams from all over the Bay Area will be arriving in Tracy for the priveledge of representing thier league, city and section in the Regional Tourmament.
Tonights game Manteca vs Salida - 9/10's== Manteca was winning 9 - 0 after 4 innings one more run and they win the game. 5th inning Salida scores 14 runs, 18 batters batter. Salida won 18 - 9 in 6th innings. WOW - what a game to keep score forl
Nothing like kids playing ball on a hot summer evening.
Here is what I've seen happen....
6 months ago -- House A a Bank Owned (REO) property was priced at $400,000. It sat on the market for 6 months, and someone finally made an offer -- of $350,000. The banks quickly within 48 hours accepted the offer.
TODAY! Sale house - sale value house- now instead of pricing house A at $400,000 -- the bank will price it under market -- so they price it at $350,000-- they have 10 - 25 offers within the first 48 hours -- the Accepted offer is WELL over asking -- close to $375,000-- $400,000 -- and the bank had zero holding days. It is taking almost a week to get an answer from the bank.
So if you're wanting to buy an REO property - plan on a "Buyer's Market" frenzy.
Will we start to see a slight rise in prices, probably --- REO's may start to push up the price instead of pulling it down.
PS _- if you are looking to buy a home in Tracy or Mountain House, find yourself a great REALTOR who knows the market. The great homes are selling before a sign goes in the yard.
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Tracy is my home. I've watched it grow & expand, into the new community of Mountain House. It is an honor when people choose me to help them sell or purchase thier home. 1st Time Buyer, Short Sale....
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