I have been through 8 homes, either outbid or short sales going under review for "modification". It is extremely frustrating. Seems to be a shortage of homes that fit our criteria, should I hang in there and relax, or put it off until next year? Will the $8K be there next year or is it over in 2009?
Frustrated over the housing market in Santa Clarita. We finally decided to stop renting and jump into this market. I went to a direct lending institution and we were pre-approved for a decent amount for the income that I make. Armed with a pre-approval letter, proof of funds, Fico scores and a 3% earnest money deposit we found a Realtor to work with who has patience beyond measure but we keep running into the same problem every single time. We find a place that suites all of our needs, is in a decent location and we would be able to see ourselves living there for a few years. We put offers in on 4 places thus far, every single time we have had to wait 4-5 days and get STOMPED on by someone with a better offer, granted they would never really ever tell us the amount of the other offers. This situation has been ridiculous, we have been almost $20,000.00 over the asking price in some cases and we would still lose the bid. Its become so frustrating, what are we to do in this market to position ourselves to get our offer accepted?
These are some of the stories we have heard from frustrated home buyers and I'm sure, if your trying to purchase a home right now you have a story similar to these. The competition is fierce in Santa Clarita as it is in all of California as well. Its important to understand we are experiencing historically low levels of inventory to sell here in Santa Clarita and all across California.
We can all speculate how this market is being manipulated by the government & the banks. In reality, the market it is what it is and takes highly trained professionals driven by ethics, not commissions to get the job done. As Realtors, Jennifer and I have sought the best training our industry has to offer. We have both received our Pre Foreclosure Specialists certifications
http://www.partnerfirst.org/ and the Certified Distressed Property Expert designation
http://www.cdepnow.com/. This training ensures sellers & buyers are working with two highly trained professionals who are staying on top of this changing real estate market. Our knowledge and professionalism helps alleviate the frustrations home buyers are experiencing in this market.
This is how Jennifer and I position home buyers to win bidding wars with their offers.
First; As a Realtor we have to understand your purchasing power, which will paint a clear picture of the areas/properties in Santa Clarita you can afford. Closing cost credits, HOA dues & Mello-Roos expenses are major factors that need to be addressed.
Second; Jennifer and I study the comps in each particular neighborhood. Looking within a 1/2 mile radius first, then 1 mile out should their be no current comps and compare per-square-foot costs. We examine the median prices of the pending against the median prices of the solds. We use only the comps of homes that match as closely as possible to the home you want to buy.
Prior to showing the property we always talk with the listing agent in a effort to determine a price to offer, see if the listing agent has a ton of offers and if the property is still available. These facts will often help determine if you have to offer more than the list price. Jennifer and I will then suggest you offer a price within that range, knowing it will not appraise, at which point your the only offer to renegotiate with.
Finally; Put down at least a 3% earnest money deposit, of the asking price. You're going to put the money into escrow anyway, so do it upfront. Jennifer and I always write a letter to the seller, explaining why you want to buy that home and submit it with your offer.
