I have had the pleasure of working with ALL my buyers over the past several years but 2009 has posed a completely different set of 'rules'. With the amount of foreclosures and short sales that we are seeing it is not unusual for me to counsel that it will probably take several offers before one is accepted. That saying several usually means anywhere between 4 and maybe 8 offers, due to the competitiveness of the market and the amount of cash investors knowing a good thing when they see one.
However I recently spent a few months writing up to 30 offers for one buyer, he stayed with me as offer after offer was rejected, he was a VA buyer which means he did not put very much down, VA usually requires a 100% loan, and we were asking for closing costs to be paid by the seller, plus all termite inspection and clearance fees, and a home warranty to cover appliances.
Our 30th offer was on a property which was being 'flipped' - bought at auction, was rehabbed with new appliances, carpet, windows etc and with a red front door! Why would that matter - well a red front door some say is lucky and we were! 30 Offers and a Red Front Door!
After 30 offers we received an acceptance, we closed escrow within 30 days thanks to a wonderful lender who I work with, and my buyer is over the moon with the fact that not only is he a new homeowner, he also gets his $8,000 first time homebuyer tax credit on his 2009 taxes!
Was it worth it, YES, YES, YES, your dream of homeownership is my dream for you too no matter what it takes. This market is challenging, but we Realtors are fighters and we stay the course because it's our business and we know in the future it will get easier, but for now we are in the ring and it's round 2, or 6, or 10 but we will win your title to your next home!
Jane Loveday
REALTOR Lic. # 01439083
Windermere Pacific Coast Properties
cell:619.519.1615
fax:619.269.3766
http://www.janeloveday.com/
Wednesday, December 30, 2009
Tuesday, September 15, 2009
Trouble (as in housing not beer!) brewing in San Diego....
Yes we do have good local beers here in San Diego but there is not a problem with our beers, our problem is with housing prices at the lower end of the scale. Want a cheap beer - no problem, want a cheap home - big problem. It's not good news...
I have written about this in indirect ways before but we are definitely seeing a big issue with first time homebuyers who are desperately trying to get into their first house before the $8,000 tax credit ends November 30th. The issue is the shortage of homes available in the right price range.
For example, looking for a single family home under $200,000 that will qualify for an FHA loan - 3.5% down and all the regulations that go with the loan, it is nearly, actually almost impossible in San Diego. Wanting to do a VA loan with zero down and closing costs paid by the seller, not really an option when you are competing with offers that do not ask for any costs back to the buyer or a cash investor (and there are plenty out there).
Wanting a house that qualifies for any other State or government loan, the same - almost too difficult to achieve.
WHY?
There are too many buyers, too little inventory (homes for sale) and too much competition with multiple offers for all lower priced properties.
Even in the condo market we are seeing the same situation, if it's a deal, a steal, then be prepared to compete with everyone else thinking the same. Even cash offers are often beaten by investors with higher cash offers and nothing, absolutely nothing, priced under $350,000 goes for asking or lower than asking price today.
What are we to do? I'm not sure, the bottom hit a few months ago, it's a seller's market and even with foreclosures about to be released after a moratorium, their low prices increases the bidding wars and invariably they sell for 20 - 30% over list price.
It's not fair, it's frustrating, ask any Realtor who works with first-time homebuyers and ask how many offers they are submitting for each client - I can guarantee it's more than at least 4 or 5, more like 10 - 12 or more.
So the answer, there is none, try and find a seller willing to accept your offer, or keep saving and keep fingers crossed for that one home that you can qualify for.
Back to a good cheap beer, relax, take a deep breath and know your Realtor is really, really trying their best to help YOU!
For the latest on the housing market check this article published this week:
San Diego Daily Transcript
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
I have written about this in indirect ways before but we are definitely seeing a big issue with first time homebuyers who are desperately trying to get into their first house before the $8,000 tax credit ends November 30th. The issue is the shortage of homes available in the right price range.
For example, looking for a single family home under $200,000 that will qualify for an FHA loan - 3.5% down and all the regulations that go with the loan, it is nearly, actually almost impossible in San Diego. Wanting to do a VA loan with zero down and closing costs paid by the seller, not really an option when you are competing with offers that do not ask for any costs back to the buyer or a cash investor (and there are plenty out there).
Wanting a house that qualifies for any other State or government loan, the same - almost too difficult to achieve.
WHY?
There are too many buyers, too little inventory (homes for sale) and too much competition with multiple offers for all lower priced properties.
Even in the condo market we are seeing the same situation, if it's a deal, a steal, then be prepared to compete with everyone else thinking the same. Even cash offers are often beaten by investors with higher cash offers and nothing, absolutely nothing, priced under $350,000 goes for asking or lower than asking price today.
What are we to do? I'm not sure, the bottom hit a few months ago, it's a seller's market and even with foreclosures about to be released after a moratorium, their low prices increases the bidding wars and invariably they sell for 20 - 30% over list price.
It's not fair, it's frustrating, ask any Realtor who works with first-time homebuyers and ask how many offers they are submitting for each client - I can guarantee it's more than at least 4 or 5, more like 10 - 12 or more.
So the answer, there is none, try and find a seller willing to accept your offer, or keep saving and keep fingers crossed for that one home that you can qualify for.
Back to a good cheap beer, relax, take a deep breath and know your Realtor is really, really trying their best to help YOU!
For the latest on the housing market check this article published this week:
San Diego Daily Transcript
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Tuesday, July 21, 2009
The State of San Diego's Real Estate Market July 2009
There's a new marketplace here in San Diego, the phenomenon known as a Seller's Market! Where last year, and even to the beginning of this year, we kept seeing prices fall, a glut of homes available and no buyers in sight.
Now, we have multiple buyers, fewer sellers, prices rising and multiple offers being submitted. Thanks to the Government Tax Credit of $8,000 to qualified first time homebuyers, which ends December 1st, the thought of owning and getting $$ back has created it's own wave, almost tidal!
Once upon a time, last year, you could find multiple single family homes available in the College, Clairemont, Mira Mesa areas priced at or under $250,000. Now there's a grand total of 2! Mira Mesa and Clairemont have become the new hotbeds of desirable areas with homes receiving many multiple offers - one in Mira Mesa actually received 63! 8 or more is not unusual, and that is increasing the prices and buyer frustration as they continue to search for that elusive property - one they can afford!
There are areas with a few single family homes in this price bracket - minimum 2 bed, 2 bath, at or under $250,000 - Chula Vista has 17, Lemon Grove/La Mesa have 16, El Cajon/Spring Valley have 42, and North Park/Normal Heights have 11.
As a buyer's agent, it means a lot more work, and a whole lot more satisfaction when you do get an accepted offer - you can search for all homes available in San Diego County at www.HomesSanDiegoOnline.com
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Now, we have multiple buyers, fewer sellers, prices rising and multiple offers being submitted. Thanks to the Government Tax Credit of $8,000 to qualified first time homebuyers, which ends December 1st, the thought of owning and getting $$ back has created it's own wave, almost tidal!
Once upon a time, last year, you could find multiple single family homes available in the College, Clairemont, Mira Mesa areas priced at or under $250,000. Now there's a grand total of 2! Mira Mesa and Clairemont have become the new hotbeds of desirable areas with homes receiving many multiple offers - one in Mira Mesa actually received 63! 8 or more is not unusual, and that is increasing the prices and buyer frustration as they continue to search for that elusive property - one they can afford!
There are areas with a few single family homes in this price bracket - minimum 2 bed, 2 bath, at or under $250,000 - Chula Vista has 17, Lemon Grove/La Mesa have 16, El Cajon/Spring Valley have 42, and North Park/Normal Heights have 11.
As a buyer's agent, it means a lot more work, and a whole lot more satisfaction when you do get an accepted offer - you can search for all homes available in San Diego County at www.HomesSanDiegoOnline.com
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Wednesday, May 20, 2009
Where Has The Buyers' Market In San Diego Real Estate Gone?
When the housing inventory (for sale homes) drops below the 6-month mark here in San Diego it becomes a “sellers” market. We now have under a 5 month supply.
What that means is, if all homes currently for sale are sold, we will have none left after 4 ½ months. Even if banks decide to unload more foreclosed homes, it will not affect this by much at all.
With new regulations on listing a home on the MLS (Multiple Listing Service) here in San Diego coming into affect at the end of May, we will only have a 2 month supply.
For homes priced under $500,000, there is the situation of multiple offers (my client just won out from 11 other offers) which means property is moving quickly, even with short sales. And talking of which, the new regulations mentioned above now require that short sales are placed into a ‘contingent’ status, between for sale and pending, as many of the short sales already have offers submitted to the lenders, with back-up offers being accepted only.
Is the bottom of the market here? What do you think …. If you are waiting for prices to drop further, look no more, they will be dictated by the sellers now, it’s a cycle, and we enjoyed the buyers market up until earlier this year, the wheels have turned.
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
What that means is, if all homes currently for sale are sold, we will have none left after 4 ½ months. Even if banks decide to unload more foreclosed homes, it will not affect this by much at all.
With new regulations on listing a home on the MLS (Multiple Listing Service) here in San Diego coming into affect at the end of May, we will only have a 2 month supply.
For homes priced under $500,000, there is the situation of multiple offers (my client just won out from 11 other offers) which means property is moving quickly, even with short sales. And talking of which, the new regulations mentioned above now require that short sales are placed into a ‘contingent’ status, between for sale and pending, as many of the short sales already have offers submitted to the lenders, with back-up offers being accepted only.
Is the bottom of the market here? What do you think …. If you are waiting for prices to drop further, look no more, they will be dictated by the sellers now, it’s a cycle, and we enjoyed the buyers market up until earlier this year, the wheels have turned.
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Friday, May 15, 2009
San Diego Property Virgins
Here in San Diego we are experiencing (what is not usually known either in our local press or the national press) a very, very busy buyers’ market with investors who usually peruse the stock market, now buying real estate. So what does that have to do with Property Virgins to coin a phrase from HGTV?!
Well, pretty much everything. With investors not taking stock in the stock market, they are taking leaps and bounds into our real estate market and buying with cash the best buys they can find. It is not unusual to find a property, call on offers in advance (we are a multiple offer market here now) and find you are gazumped (does anyone remember that phrase) by an all cash buyer.
It is inherent in this economy to look for the best investment for your dollar. First time homebuyers are beginning to get on the bandwagon, only to find in a lot of cases that investors are beating them to the post.
I frequently call ahead to ascertain if there are any offers on the table, at or above asking – no actually figures quoted – only to be asked if I am representing an investor (all cash) or a home-buyer.
What is going on????
I now tell my buyers NOT to listen to the media, read the press, listen to the news, because in reality we are in the middle of a crazy, frenzied situation. Tonight I showed 6 properties, of those 3 we had to wait for the key to be returned as it was already being shown and this is within a 1 hour window in the middle of the week – goodness knows what is happening with the rest of the hours in the day. One property was already in escrow – YIKES!
So my take… my point … we need to educate buyers as to what to expect in REAL LIFE, not in the media, and to be on top of all offers they think they need to make, give their highest and best, and have realistic expectations that the bargain is no longer there. Tomorrow may be too late, yesterday was right and today was a competition…..
Jane Loveday
619-519-1615 Cell
http://www.JaneLoveday.com
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