It's a Buyer's Game

Where are you in the buyer's game that continues to play out in today's real estate market? How do we know we've reached the bottom until it begins to rise? San Diego real estate continues to remain a hot commodity. With foreclosures and short sales dominating the market place, bidding wars are ensuing and although cash is still king, FHA financing which allows a purchase for an owner-occupied property up to 96.5% is available and winning bids. With the availability of CalHFA financing, to cover 3% of the Down Payment (it needs to be repaid but at a lower interest rate), that leaves .50% for a buyer to place as a down payment. It is a great time to buy! If you're still perched on the fence, your friends, colleagues and many investors are taking advantage of lower interest rates and in some cases are seeing homes at half the price of just a few years ago. A few things to remember when purchasing a Short Sale or Foreclosure:

1) Bidding Wars Happen! When an agent prices a property at or below market value this drives up the competition and multiple offers are received assisting the bank with obtaining a higher price for the property. Patience and persistence are key! If your agent is well versed in handling and closing both short sales and foreclosed property, stick with them. It is in their best interest to get you the home and close.
2) INSPECTIONS! Do your due diligence as a buyer and pay for a home inspection. This may assist you in catching any future problems, i.e. roof leakes, plumbing issues, etc. You can also hire additional specialists for property lines, mold and many other reasons to insure your new purchase doesn't have unforeseen damage or future issues.
3) Loans-Many sellers still want a 30-day offer when purchasing a foreclosed home. The sooner they get paid and get the property off their books, the more room they have for financing or replacing it with another foreclosure. Discuss reasonable time frames with your loan officer. Get all documentation in quickly and efficiently to avoid have to delay closing. Lending is still a challenge and is better tackled with a well versed loan officer in the mortgage product that suits your needs. FHA can be tough with loan conditions and time frames. Be prepared to be on call to both your lender and your agent for any last minute requested items.
4) Work with an agent that understands Short Sales and Foreclosures. Has the agent closed a Short Sale or Foreclosure? When was the last time they handled a transaction? Do they have any designations that may assist you in handling a Short Sale or Foreclosure?

Tackle these items up front and you will feel more prepared to handle the transaction. You can search our website for foreclosures, short sales and everything else on the San Diego Multiple Listing Service at www.westcoastlivingrealestategroup.com

Until next time, "You always pass failure on the way to success," Mickey Rooney.