The real estate market here in Northern California has finally started to pick up a bit. Many homes are receiving multiple offers, going above asking price. I recently wrote an offer for a client $15,000 over asking because I knew it would take that to secure and acceptance. Guess what-it worked, and my client got the house of his dreams. No more "low-balling" on desirable properties as they are going quickly to the highest bidder! Keep in mind however, the appraisal must come in at the sales price or the deal could collapse midstream.
One buyer I had was qualified for a $400,000 home and we put an offer in on a condo that was a "short sale"; that's when the property's market value is less than what is owed. The asking price was $398,000 and we offered $400,000, with no credits. It was a clean, strong offer. The seller accepted it, and off it went to the bank. The person in charge, the "asset manager" from the bank, took several months to even review the file and when it did finally come back, the bank wanted $425,000. My clients couldn't go any higher so the deal fell apart. I got them immediately into another property that was not a "short sale", and as of this writing the other condo is still on the market after nearly 6 months.
My advice to buyers: avoid the "short sale" if your time frame to move is less than 90 days. Traditional sales can typically be closed in 30 days. FHA loans can take a little longer, but nothing compared to trying to purchase a "short sale" property. If you do fall in love with a property that is selling short, my advice is "what a great time to practice patience"! And most importantly, make sure you are represented by an experienced buyers agent. Don't try this alone!
Kim
-keeping it REAL.
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