Hi Ashley,

I'm a local realtor with 18 years experience with Livermore Real Estate. I've also sold many new homes. If I were you I'd consider purchasing a REO in Livermore .... I would not purchase a new home, not at this time. Reason for this?? New homes should still be coming down, a bit, in price, over the course of 2009.

Please call me to discuss your needs, if you'd like to. Or email me at realestate@tomlyons.com to discuss your needs in private.

Or you can check my foreclosure website at http://www.tomlyonsforeclosures.com
Thanks,
Tom

Hello Ashley,

I wondered if you had made your decision yet. What websites are you checking to find what;'s available? Many sites do not update their information frequently.

I can tell you that there are SFR homes in Livermore in your price range right now. Not all REOs are in poor condition. Some need only minor fixes whereas others could use an overhaul. If you find an SFR that you can move into, and slow complete the upgrades, this might be of interest to you. For example, you might find a ktichen with laminate counters in good condition, but not granite. You could use this kitchen for years to come, until to decide you wanted to upgrade to stone or granite.

There are pros and cons of owning a townhome vs a condo. Exterior upkeep is one. Contact me further for more details and comparisons of the two types.

The reason why prices seem high in the cities in which you are looking:
Many home buyers have the same question as yourself. My suggestion is to look at each area individually when you are thinking of buying in that area. The reason, is many towns and even neighborhoods, are not as widely affected by price reductions and the 'crash' as others. In fact there are quite a few where the home prices have held up and even experienced an increase in home values.

Furthermore, there are some towns where homes sell within a day or two. Again think location, location, and schools, jobs, and some other factors, which are the main contributing factors to the desirability of those areas.

Another reason why some properties might sit longer on the market than others, is the lending industry lockout. On the one hand, the market is filled with eager buyers ; however, qualifying for a home loan can be a challenge. Make sure you work with a reputable lender (with stability) who is writing loans in this market. Gather all your information up front and have it ready, so your process will move faster.

It's the best time to jump in and take advantage of lower home prices. If you intend to live in the home for the longer term, then you will build equity in the long run.

Good luck and let me know if you wish to work with me, or if you need any further information. I would be glad to meet with you and to show you properties in the Livermore and San Ramon area in your price range.

Please go to my website which is dedicated to current real estate conditions and foreclosures. All of the answers to your questions on whether or not to buy will be answered there. Please go to the Lyons Real Estate report section located in the buyers resources page.
thanks,
Tom

Hi Ashley,

With your 5-8 year timeline you will be making a profit when you sell and decide to move up. If California housing were a stock it would be hard not to admit it has performed pretty well. Historically, since 1968 there has only been one time where California housing had consecutive years of price decline. That would be 1992-1996 (see chart link below). Note that after this period the entire decline had been made up within the following two years (92-96 total decline of 12.2%, 97-98 total increase of 12.5%).
http://docs.Steven-Anthony.com/200XCAAnnualDataChart.pdf

One thing that is important for you to determine is whether you have been pre-qualified or pre-approved. There is a big difference. If you have not been pre-approved I can do this for you as I am both a Realtor and Mortgage Banker. Please make sure you are aware of the differences by visiting:
http://www.steven-anthony.com/default.aspx?pp=39377

Also, I'm not sure what type of financing you are assuming that will be used at this time; however, FHA financing allows for only a 3% downpayment (to conserve your cash for security, school, etc.) until the end of this year, Starting in 2009 this will go to 3.5%.

In most cases, a traditional detached home will provide the best long-term return. I would suggest concentrating your search on detached SFR REO properties that have gone through the Short Sale process and now sit in the hands of the Bank - who hate owning them and are highly incentivized to unload them (due to the cost of maintenance, property taxes, utilities, etc.). I've been very successful at getting price reductions and Seller credits on REO properties. Right now only 3.5% of Pleasanton and 11% of San Ramon's detached SFRs are REOs, but Livermore stands at 18%.

I very much enjoy working with first-time buyers, and it's important to work with someone that will not rush you into making a decision. Please review my Client Testimonials by clicking on the link below. If you would personally like to speak with any of my clients just let me know. If after looking at my testimonials you feel I'm someone you would like to work with let's get together and talk about your plans in more depth. You bring the questions; I’ll bring the answers.

Best Regards,

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist

Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.™
Cell: 510.461.6011
http://www.Steven-Anthony.com SteveO@Steven-Anthony.com

Ashley
You ask some very good questions.
My suggestion is to talk with a Realtor or two that works in those areas and develop a plan. Someone who can analyze your current situation, then provide you with alternatives and the pros and cons of each.

There are two good reasons to purchase a home in any market- appreciation over the long term and the tax advantages. However, in many areas prices are declining, so is now the best time to buy? IN most areas the prices may fall further, but they may not. That's why talking with a Realtor who works in those areas can help you determine what you best course of action is now.

Buy a really nice townhome? Buy a fixer in a great area, but it needs work, you are both going to school, no time to fix it up? But in the long term it has the potential to be worth a lot and will appreciate the most in value. The principle of appreciation is something to think about if you have five to eight years.

I would love to help you, however I work in southern California. However, I'd be happy to refer you to a top buyer's agent that could sit down and work with you. Just contact me via my Trulia profile.

Good luck!

Ashley Jones:

Tough choices! The best approach would be to sit down with a Realtor who services those areas and who can objectively go through all of the options with you. We can provide you with the pros and cons of each area and neighborhood. We can provide past market trends and current projections for each area as well. In addition, we can counsel you on which areas and types of homes are the best long-term investments.

Like many young couples, you have realized that you can’t afford the homes you really like! My advice? Be smart - look at getting to the home of your dreams as a number of steps. Many have gotten themselves into serious trouble by trying to get the “house of their dreams” on their first attempt. I’d advise you to plan on three steps to get to the home you eventually want to live in for a long time. Start small and keep some cash in reserve. We can help you set up a plan to get there and show you how others have accomplished their goals.

We’d love to help! Contact us if you’d like more information – we service all of the areas you’ve mentioned.

carl@carlmedford.com