That is a very good question that many buyers are having in our current market. There are three main reasons; price, terms and paper work & process. We have to remember that when dealing with REOs, bank owned properties, we are dealing with an asset manager who will make decisions based on guidelines and policies not emotions. Let’s address these three categories that if done properly by buyer and Realtor will get offers accepted in most cases.
First is price. Currently many REOs are being price just below the market value range of a property in order to create the activity needed to produce multiple offer and obtain the highest possible price for the owner. Your Realtor should be able to give you a market value range so that you know what you are willing to pay for that property. Just because it is an REO doesn’t mean it will sell for less, more likely it will sell higher than asking price if there are multiple offers. If you really want the home put your best price and make sure you will qualify and/or have the cash to close.
Second is terms. Terms under what circumstances are you willing to buy the property. This can be the amount of cash down and financing needed, all cash, as-is, how quickly you will remove any contingencies and close escrow. You have to be able to perform on the terms in the contract and the easier the terms the better for the owner. Know how much you can qualify for, will the lender accept and as-is purchase for the loan they will give you, what repairs will they require for the property to qualify. If all cash you should be able to provide evidence of money to close and even if it is not all cash this will be a requirement. Make sure your terms are not only acceptable to you but very likely acceptable to the owner as well. Keep it simple and the less you ask of the owner the better.
Third is the paper work and process. If yo have the first two solid and this one weak, your offer will not get accepted. This part is where an experienced Realtor is so important to have in your representation of buying any home. Your Realtor should inform you on how many offers there are, when is the deadline to have an offer in, how long the response time should be, what paper work will need to be included with your offer and what will be the process for presenting your offer. Your Realtor should follow up to confirm you offer has been received and when it will presented and communicate all information to you immediately.
If you do all of the above you should have a strong edge in getting your offer accepted. Put you best foot forward when making your offer.
If you have any comments, opinions or questions I’d love to hear from you.
The other evening I decided to enjoy a nice family walk in Downtown Campbell. As we walked and enjoyed the lovely summer evening we began to to get hungry. We saw this quaint restaurant and decided to go give it a try. We were pleasantly greeted and escorted to a table where we sat and looked over the menu. The selection of dishes are inspired by the mediterranean cuisine. The waiter took our orders. Well let me tell you, this was a meal that we will not forget for a long while. Everything we ordered tasted fresh, delicious and just mouth watering. The portions where just right, except for my son who took some of his order home. The desserts a work of art in appearance and to die for in taste. I highly recommend Olio to anyone who enjoys good food in a wonderful setting. Prices are moderate so you don’t have to break the bank. By the way, they have an excellent wine collection as well. They are located in Downtown Campbell at 384 E. Campbell Ave., Campbell, CA 95008 408-378-0335 so if you are in the area stop on by or call if you prefer to make a reservation. Please let us know how your enjoyed your visit there.
I read this article today and wanted to share it with everyone. It comes from an online leading real estate news publication:
Friday, June 12, 2009
Definite signs of a false recovery
Interest rates stabilized at the conclusion of $65 billion in new Treasury borrowing this week, mostly by sales of long-term bonds.“Stability” is a relative term: All long-term rates have risen roughly 1 percent in just six weeks, and a further run-up will undercut any economic recovery. The question is whether current prospects for recovery justify this rate-surge, or is this surge already unsustainable? If the latter, what’s the chance for a reversal, especially in mortgages? More » http://www.inman.com/buyers-sellers/columnists/loubarnes/definite-signs-a-false-recovery
What’s your opinion?
Nobody knows! That’s right, nobody really knows when the bottom will hit as far as real estate prices. The best way to see a change or a trend is to track the data. For example, you may want to track the data in a certain zip code of interest to you. Look for the number of active listings vs pending vs actual closed escrows. Keep track of the number of bank owned, REO”s, properties vs short sales vs just regular sales. If you track this information, along with list price vs actual sales price, you will begin to see trends. If you have them on a line graph you will see them even more clearly as the graph lines begin to change directions. Usually a 3-6 month trend will indicate a change in the market. So you, along with the experts, will know when the bottom hit about 3-6 months after it hit. That is just the way it is unless you have that magic ball we all are looking for.
There seems to be a big window of opportunity for home buying in San Jose and throughout silicon valley due to the number of foreclosures. For many future home owners that felt left on the sidelines during the real estate boom of a few years ago an opportunity to buy home has not been this good in the past 6-8 years. The increasing foreclosures have driven home prices downward and word has it that a second wave of foreclosures this summer will help keep prices low. This along with historic low interest rates have made it a home buyers haven.
Buyers, don not miss out on this opportunity to making home ownership a reality. Speak with your Realtor and get all the information you need to be ready to get into the market and be able to get your offer accepted and close escrow on your future home. There is no better time than to start today!
A good time to sell is when you are ready.
The market will be the market weather you sell or not. The focus should be on what your need s are and in what time frame you would like to meet those needs. For example, it may be a declining market but you have a job opportunity that in the long run will benefit you and this opportunity may not come again. Or, you may not get top dollar today if you sell but you are buying at a much lower price and your property taxes along with low interest rates will all help you get that bigger home you want at a lower monthly payment and lower down payment. As long as the Realtor you choose gives you accurate market information to make a wise decision you will be fine.
So remember, the best time to sell is always when you are ready and not the market.
