There are likely more months ahead of gradually falling home prices & stricter loan requirements. However, for qualified home buyers, the low interest rates, large home selection and considerably reduced home prices are providing some remarkable opportunities.
In Ventura County over the last 12 months, home prices have fallen 38%! Homes are selling at an average of 97% of list price, when they are priced near market average. This is a strong sign of the beginnings of market recovery.
There are some rather compelling indicators from a variety of sources that indicate continued positive pressures on our markets since the start of the year.
Anything being offered for sale for less than $500,000 and especially in the $350,000 and below range is being snapped up by investors and first time home buyers. It is not unusual for me to call a listing agent for my clients and be told there are 20 to 25 offers!
This is like the market 3 years ago but in reverse. Prices have fallen so far that first time buyers are jumping at the opportunity to realize their home ownership dream.
At the same time, investors are snapping up homes with all cash offers making it very difficult for many first time buyers to compete. Their frustration is that list prices are in their price range, but competition from investors and austere bank terms drive the actual sale prices much higher.
There are still a number of banks that have not figured out that a short sale is an opportunity for them to cut their losses. Some of these banks take 8 to 10 months to approve these short sales and consequently they loose numerous deals from frustrated and impatient buyers. Often a buyer waits months for bank approval of short sale, only to have the bank foreclose on the property and auction it off for many thousands less than their offer! It makes no sense and can't be predicted.
First time home buyers need to take a hard look at their needs and be realistic about the cost of home ownership. You simply cannot low ball a listing with a reasonable expectation of success now. The market is much more competitive than a year ago. The days of offering $50,000 less than market average for a home are coming to an end.
Your realtor should be doing a Comparative Market Analysis on any home you want to make an offer on. Once you know the market value of the home, make an offer based on the market price. If you have taken the time to be pre-approved with a lender, you'll know already if this home makes financial sense.
Be prepared to negotiate and expect competition! If you cannot be flexible in price and terms, this market will be extremely difficult for you. A take it or leave it attitude will not serve a buyer well either, and many folks have lost wonderful opportunities for home ownership for the sake of a few dollars.
One rule of thumb to keep in mind is: for every $1,000 you borrow for a home, it increases your mortgage cost by about $7 to $8 dollars.
Develop your buying strategy, negotiate price and terms based on market price, be pre-approved with your lender, and beware of short sales. Be flexible and have a backup plan.
Let your real estate professional guide you through the 30 pages of the offer process and handle all the followup escrow details. Expect them to schedule and track all the inspection, termite, and home repair and home warranty details for you and to provide you with experience based guidance for a successful transaction.
You can buy a home for a lower price than we have seen in many years. Call or email me and I'll be happy to help you get started.
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Visit http://www.markthorngren.com and click on "Find a Home" to start your own home search on our local Multiple Listing Service.
More questions? Email them to me at mark@markthorngren.com or call me office direct at (805) 504-0228.
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It is important that you know, that I do have time for you, your family, friends or business associates who could use my help right now.
Mark Thorngren
ZIP Code: 93301 Location Characteristics: Bakersfield is located in the San Joaquin Valley and backs up to the Greenhorn Mountains. In many ways the location and views are reminiscent of Salt Lake City.
Winters are cooler than further South, but snow is not a normal part of the season. Summers are quite warm and feel more like Texas than California.
The Bakersfield Chamber of Commerce writes in their Community Profile "The town of Bakersfield was named after one of its early settlers, Colonel Thomas Baker.
The Colonel planted a ten-acre parcel of land with alfalfa that was used by travelers to feed their animals when traveling from Visalia to Los Angeles. The field was called Baker's field. In 1869 he was appointed to survey a formal township and it was suggested the new town be named Bakersfield since it was already known to travelers as Baker's field."
Bakersfield has a population approaching 300,000 people and straddles the Kern River. Kern County is the leading oil producing county in the Continental United States and is in the heart of the fourth most productive agricultural county in the nation. The Sierra Nevada, Temblor and Tehachapis Mountain ranges approach the city on 3 sides and provide incredible fishing, camping and boating opportunities. Los Angeles is less than a 2 hour drive South while Fresno is about the same distance to the North. If you don't mind hot summers and you enjoy the central location, Bakersfield will "knock your socks off."
About Mark Thorngren:
I am a "By Referral Only" Real Estate Consultant - which means your needs are my #1 priority. My Business is referral based so that I can spend more time helping folks to find the perfect home, and much less time marketing my services. My goal is to provide exceptional service to you for life. Buying a home is a process which we work hard to make an enjoyable experience. Compare a limousine ride to a taxi cab fare. We want your trip through the home buying process to be comfortable, informative and memorable. We won't "drop you off "and abandon you after we find your perfect dream home. We will make your "ride" smooth and secure - with door to door service. As your Consultant, I will ask you profound, insightful questions to help you discover your greatest needs. I will offer you strategies to save you money, time and effort. As your Negotiator I will be tenacious and thorough in pursuing the best terms and conditions for your home budget. As your Administrator I will carefully oversee all your transactional paperwork, inspections, disclosures and liability issues. I will drain away your stress & strain. It is important that you know that I do have time for you, your family, your friends and business associates and people you like - who could use my help right now.
For free recorded real estate information you are invited to call 1 (866) 345-7028 or dial extension 120 for a client recommendation. Please visit my website at www.markthorngren.com to research all your home needs.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
