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Trulia San D…, Home Buyer in San Diego, CA

Does a first time buyer stand a chance against investors in the current market in San Diego?

Asked by Trulia San Diego, San Diego, CA Fri Apr 12, 2013

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JR Thrasher’s answer
NO, not at all, EVER! But a first time buyer shouldn't be looking at the same types of properties as investors. So there is no real competition. Investors are looking for properties they can remodel and sell for a profit. First time buyers should be looking for properties that are move in ready. If a home has extensive damage, foundation problems or roof issues a first time buyer should steer clear.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
(619) 929-0105
1 vote Thank Flag Link Fri Aug 2, 2013
Of course,

Get pre qualified first and find a good realtor that will get your offer accepted before any other. It s very important to gather all documents that you will need before putting an offer.
1 vote Thank Flag Link Wed Jul 31, 2013
San Diego has been hit hard by foreign investors who want to scoop up practically anything that’s for sale.The investors have made things especially tough for first time buyers, so it will take some creativity to beat the investors in their game here are some tips:


http://www.realtypin.com/news/story/1189-the-top-5-ways-to-b…

http://www.realtypin.com/news/story/1201-san-diego-s-housing…
1 vote Thank Flag Link Sat Apr 20, 2013
Hello Trulia,

This is one of those questions that could take quite a while to answer. Fortunately, my wife wants to hang out with me, so I will keep this rather brief. The bottom line, whether it's an investor or first time home buyer, is the net proceeds to the seller combined with other critical terms (down payment, removal of contingencies, days to close, et.al) I believe the way you are asking the question means you are giving some assumptions to those labeled as "investors" versus those as "first time home buyers". I get that investors may have greater financial resources than first time buyers, but that is not always the case.

Also, keep in mind (for example Fannie Mae Homepath Properties), they do not allow investors to make an offer within the first fifteen days a property is on the market. In this market, any property that is priced well (especially those typically at the price points of your standard 1st time homebuyer), will be in pending prior to the 15 day period passing.

Anyway, that's the short and skinny, but would be happy to discuss in further detail with anyone.

Sincerely,

Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Web Reference: http://www.chadbasinger.com
1 vote Thank Flag Link Sun Apr 14, 2013
Yes you can, if you get your loan underwritten prior to making the offer. We underwrite our pre-approvals within 24 hours, and we provide you and your agent a copy of the conditions sheet, DU/LP Approval, and first page of bank statement (to show you have the funds to close). The more information you give them regarding your financial and credit situation, the more decisive they will be in accepting your offer. Good luck!


Rene J. De Blanco
rdeblanco@firstcal.net
http://www.firstcal.net/deblanco

619.768.0025
0 votes Thank Flag Link Thu Jul 25, 2013
YES... good representation can dial you into properties that have not yet hit the market or that might be obtainable that are not found on mainstream media or MLS.

If you are prepared with either your approved financing or cash, and are ready to go, we can secure a property for you.

Jay Becker - Senior Real Estate Consultant
Lux-RE-Homes - http://www.OWN-SD.com
Office: 858.222.4321x7 | Mobile: 858.335.4235
0 votes Thank Flag Link Thu Jul 4, 2013
First, are we talking about purchasing a short sale or traditional property?

For a short sale -
The seller is not going to benefit by selling for the property for a higher price. So, why would a seller select one offer over the other? It comes down to the buyer's agent's ability to prepare an offer the listing agent finds attractive. In reality, a short sale seller is going to go with the recommendation of their agent when it comes to offer selection. What makes an offer attractive to a listing agent? Give me a call and we can discuss the details.

Lesson: Make sure you agent knows what it takes to make your offer stand out against the others.

For tradition sales -
Price is important. But, as you have probably seen, the terms of the sale and financing are abundantly critical. If I have a property listed at $500,000 and get an offer for $550,000 and another for $490,000, which one would my seller find more attractive? It all depends on the terms. Selecting the highest offer is not always the correct answer.

From my experience, buyers who utilize closing cost grants or similar assistance programs are going to have a tough time getting an offer accepted. If you share a little more information about your situation, you should get more specific and helpful feedback.

Each situation is unique. An experienced agent can guide you through the process and get you into a new home.

Robert Boerner
Gecko Realty
(619) 977-2262
0 votes Thank Flag Link Sat Apr 13, 2013
Jeff, I understand your frustration. But consider that some of today's most popular metro neighborhoods were considered dicey 15 years ago (and that 15-year period includes about eight of abnormal zero growth).

The trick in a market like this is to target areas that are getting ready to bloom. Be prepared to add sweat equity to your property, and in a few years you'll be sitting pretty with a personalized house in a rejuvenated neighborhood.

I've also found that some listing agents and sellers are sensitive to the plight of the first-time homebuyer and will consider offers accordingly. This is where those letters of appeal become so very important. When competing for a property that might be a target for investors, the first-time buyer needs to be over-prepared, flexible, and patient.
0 votes Thank Flag Link Sat Apr 13, 2013
A first time buyer does stand a chance but needs to be very persistent and not give up!!

Just this week I got a call from a listing agent. We had bid on her REO listing which generated 31 offers. The offer they took was a cash investor. Believe it or not the cash investor ran out of money and cancelled the deal ...just goes to show you...things happen. The agent called me to give my buyer a chance at the property.

First time buyers should be prepared to really work at it for a few months....If you are reasonable in your expectations, you will likely get something!
0 votes Thank Flag Link Sat Apr 13, 2013
I have tried over the last year. Cash is king, and those buyers are crushing opportunities for first time homebuyers. Try talking to the new developments, they might offer a glimmer of hope, since many of them will not sell to the cash only investor crowd. The downside of the new developments is the obscene monthly fees ( HOA, Mello Roos) The only other option is a worn out stucco box in some gang infested, decaying neighborhood, with appliances installed before the Kennedy assassination.
0 votes Thank Flag Link Sat Apr 13, 2013
Only if it is FM. On the others, it depends not only the cash offer but how strongly first time home buyer is.
0 votes Thank Flag Link Sat Apr 13, 2013
Yes, I have 2 new ones. Call Dana @ 626-393-4271
0 votes Thank Flag Link Sat Apr 13, 2013
I have two properties coming on the market very soon. One is about 509,000, the other is around 250,000. If interested call Dana @ 626-393-4271
0 votes Thank Flag Link Sat Apr 13, 2013
Investors are buying real estate using USD, not gold bullion or barter or a herd of Llamas.
A first time buyer has exactly the same USD as the investor.
-
So what is your question?
Why are first time buyers losing to much of the time?
They are not following or hearing good advise?
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Residental buyers actually get a head start on many foreclosed properties. A HEAD START. That means they have an advantage if only they followed the advise provided.
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Too many live in denial. They believe they will be able to snag a house for 40% of value. Their agent has aggreed to participate by hanging paper on every foreclosure that comes on the market muttering to the buyer, "You never know what will stick."
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Bad advise followed by the unrealistic results in pepetual frustration.
If a first time buyer wants to buy a home in any market, they must make their offer competive with other offers received. That means you must reckon dead the idea you willl get a livable home at 40% of value and be ready to come in strong with a clean offer. If the buyer is packing FHA or VA baggage, they will need to be more creative at becoming competive.

What do they not understand about competivie?

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Sat Apr 13, 2013
For those who still reside in Hotel Reality, chances are slim.
0 votes Thank Flag Link Sat Apr 13, 2013
Hello,
I could not agree more with Hector regarding the right Realtor. I feel financing is everything in a Seller driven Market. If you add Closing cost Grant to the equation your offer becomes that much stronger since yiur not asking the seller for any concessions. Happy to assist you.

John Georges
Area Manager/San Diego
Direct Lender with Grants
951-536-1217
0 votes Thank Flag Link Fri Apr 12, 2013
I think I know why you are asking this question, it is dough market for first time home buyer's, but it doesn't mean you don't have a chance to buy in this market. As Hector said you need a very good agent to put that offer together. The offer must be strong to be accepted. You need a pre-approval from a lender, not just a pre-qualification, that means that loan underwriter must have reviewed all the documents.
0 votes Thank Flag Link Fri Apr 12, 2013
Yes! But - you'll likely submit many offers, and you HAVE to be sure you're submitting strategic offers. You can make yourself stand out, so be prepared to offer at least the list price, often more. And, you're also competing with other buyers, such as yourself, plus buyers with high down payments.

If you need any help in finding a home and submitting offers, let me know. If you already have an agent, he/she probably already gave you a list of things you can do to strengthen your offers.

Don't give up, prices are increasing because of the lack of properties on the market.

Warm Regards,
Cory
0 votes Thank Flag Link Fri Apr 12, 2013
Of course they do, First time buyers have a good chance if they have the right REALTOR and said REALTOR having the right offer and relationship. A serious buyer has to have all its ducks in a row:
-Letter of approval from the lender
-Proof of funds
-DU Results, Credit Report

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
hectorgastelum@yahoo.com
619-954-2225
efax 619-270-2516
0 votes Thank Flag Link Fri Apr 12, 2013
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