Â Well, Its been a while since my last blog. Since then not much has changed in terms of laws and regulations... (thank Goodness). A lot of regulations expired that could have been a huge disappointment to the business, however they were extended!Â Some for a year and some for more. So it seems like the business in terms of laws remain the same as last year. I saw a lot of progress last year. I was involved with over 5 million dollars of Real Estate in terms of Selling, buying and investing. One thing I found that was common in all the deals I worked was the seller was the person making decisions. Opposed to years before, where the buyers were the ones that were trying to decide what property they wanted to send offers to. I've seen properties that have received over 40 offers. Its insane out there. Sellers use to pray to get 1 offer and when they did, they were usually way lower than expected. It is so common now to see offers going over listing price, especially when the buyers need help with closing cost. Fortunately the home are coming in at price when the appraisals are done. In case you didn't know what this means here is an example,
If the home is going for sale at a price of $350,000, The offer from the buyer gets accepted at $360,000 and the appraisal that the lender sends for comes in at $375,000. The sale price stays at $360,000. However if the appraisal comes in at $355,000. Then the sale price is now $355,000. The lender will allow you to under pay but never over pay. (unless its cash of course) I assisted a buyer where the appraisal came in at 25,000 over sale price. As you can imagine,the buyer was extremely happy.
The investor market right now is super hot! There are a lot of people that are loving the Market right now. In my opinion the market is very beneficial to our economy. A lot of jobs are being created and I feel a new generation of home buyers are coming to the scene. Buyers aren't scared to purchase right now. I haven't heard the famous quote " I think the home prices are going to keep dropping" in a long time. Now people are willing to overbid on certain properties. These home buyers do not want to miss out on the boom that happened in the past. There were a lot of us that said " I wish I would have got involved when the time was right". I believe that time is coming around. I see home prices Increasing. I have a home for sale right now on 10601 Pinehurst ave. near South Gate park and that is very sought after area. While we were remodeling the property it got a lot of people driving by asking when will it be ready. I've sold a house that the kitchen wasn't even installed yet. It was a blank room. People know that South gate, Lynwood, Hp, Downey, Whittier and surrounding areas are a hot market right now.Â Homes are going quickly and sellers and Investors know this.Â
There is also a rise in Standard Sales. People actually have equity again and those that don't, are doing Short sales which is their best option and purchasing a home right after at current prices. Letting a property get Foreclosed on is not the right way of getting out of our recession that people think we're in.Â
I've said it before but this is the time to Buy and/orÂ sell.. Interest rates are low, and there are many programs out there to assist Buyer!! I have helped many people purchase their home with as little at .05% down payment with a less than 3.5% fixed interest rate and money to help with closing cost. This is becoming common now. California offers this great program here is a link http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm. (knowledge is power). Why not purchase now and quit paying rent.
Jorge D. Acuna