Home Buying in Stockton>Question Details

Karen E, Real Estate Pro in Sarasota, FL

No contingencies accepted in Stockton at all?

Asked by Karen E, Sarasota, FL Tue Oct 9, 2012

My husband is in Stockton interviewing for a job (relo) and met with an agent (he met at an open house in an area we're interested in) to see a couple properties.

This "agent" told him - NO ONE there will accept an offer on ANY property right now that has a contingency of the sale of the buyers (our) house.

If that's true, how can they even be selling anything at all in Stockton? Only first time buyers or all cash investors would be able to buy a house. Secondly - the market there is DEAD - why make it harder by refusing business?

Something is very fishy about this statement. So I have to ask - for traditional listings (not short sales/REO etc.) is this true?

We are going to be selling our house out of state and require a concurrent close. Selling here first and renting back is a very small possibility, but it's not likely.

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Hi Karen,

Currently we are in a market of very low supply, high demand and escalating prices. Click here to see the market trends for Stockton: http://rocky.prucalifornia.com/Stockton_Real_Estate_Activity…

As a result, you will experience competition on every desirable home. However, there are still ways contingencies can work. It really depends on your current situation and before solutions can be provided, like every agent would, we have to understand your situation.

Credit to you for not giving up and taking "no" for an answer. The fact of the matter is, where there is a will there is a way and it can get done if the offer is structured correctly.

Have a super day!

Rocky

Rocky G.H. Hawrysz
Prudential California Realty
(209) 444-6610 Direct
(209) 433-2000 Fax
rocky@prucalifornia.com
http://www.TeamHawrysz.com
License No. 01468373
0 votes Thank Flag Link Tue Oct 9, 2012
Sellers in any neighbourhood are reluctant to accept an offer with a house-sale-contingency.

It basically means that their house isn't sold until your house sells. Not a great place to find yourself in today's market.
0 votes Thank Flag Link Tue Oct 9, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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OK, thanks to all who replied - this clarifies it quite a bit. Yes, we're listed on this end right now and expect a fast sale due to our location in a highly desirable area and price range.

Ironic that the low supply is creating a high demand in an area that's so depressed! I expect then that the prices (while depressed) are still slightly artificially inflated due to this??

FWIW - We're Californians that only just moved to WV from CA 2 years ago - moving back is easy.
We would be lshopping in the $500K range, near the country clubs.
0 votes Thank Flag Link Tue Oct 9, 2012
Hello Karen, Yes, you will not be able to submit offers contingent of your home in WV selling to buy one over here. We can go over other options. You can buy with as little as a half percent down payment and it is an FHA 30 year fixed rate loan 3%-4% with no pre-payment penalty. You would only need a few thousand for an earnest money deposit.
We need to figure out some alternative options for you. Give me a call to put together a game plan. What is the market like where you live.
Do you think you have equity and how much are you anticipating putting towards the new purchase? Let's go over the numbers. You can buy here and even rent out your home in WV until it sells or ? Let'g get you approved to buy here for a start. Here is a brochure of the program which is only half percent down payment and can also contribute most closing costs so you literally only need half percent down. You only need a minimum 580 fico score to qualify FHA Access half percent down.

CHF Access half percent down brochure, pdf
http://tinyurl.com/9fak6ho

Sheryl Arndt, standard needs list checked
http://tinyurl.com/8p3792f

CHF Access income limits http://tinyurl.com/8lzf8he

http://www.Under640FicoScoreLoans.com
http://www.FrankandSheryl.com
http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Tue Oct 9, 2012
I think there was a little misunderstanding here. First, at this point the inventory is low, so the market is not in favor of the buyer as much as it is the seller. Because of this there are usually multiple offers on a property. This causes a higher demand for each property and thus more competition. When the seller looks at the offers they will be looking at the price and the terms, such as contingencies and the ability for the buyer to close, and close on time, with the least amount of possible problems. I have noticed most agents in this area are looking for a clean offer at this time, meaning no contingencies and no credits. However, if the property has not sold right a way, they might be willing to consider some different terms.
0 votes Thank Flag Link Tue Oct 9, 2012
The Stockton market is not dead -- it is very active. Most buyers are investors or owners who lost their homes in the early wave of foreclosures and now qualify to buy again. There are very few ":move-up" buyers due to the drastic drop in home values in recent years. On the few traditional listings there will be multiple offers and owners will pick the most solid offer. I recently listed a traditional equity sale where the owner actually accepted an offer a little under list because it was all cash and could close in 10-15 days. We had several offers over list with financing, but owner felt these were not as solid.

If you are not familiar with the Stockton area, I would advise you to rent for a few months anyway. That way you could take your time to explore the various neighborhoods to be certain you will be happy in your new home. The Stockton market will not recover in the near future and home prices will remain stagnant. If you purchase a home and later find you don't care for the neighborhood you most probably would have to sell at a loss. Remember, it's much easier to get out of a six-month lease than a 30-year mortgage!
0 votes Thank Flag Link Tue Oct 9, 2012
Stockton is close to Fresno; but a different MLS and different problems:

I would guess that the CONTINGENCIES that the Realtor is talking about are things like having to sell your other home first, and making your purchase CONTINGENT upon selling it.

When you talk about the LOAN CONTINGENCY, APPRAISAL CONTINGENCY, and INSPECTION CONTINGENCIES; I would never want my Client to make an OFFER without them: The Buyer must be protected, and these contingencies are critical.

If the "agent" is including these in his arguement; I would suggest working with another Agent because he is not representing YOUR best interests.

If you need to sell the other house first; you should consider that you will have a period where you rent and live some place for a short time: It means moving twice, and is a pain in the behind, but it is very unlikely that you will be able to time the two sales perfectly. Fact of life!

Good luck and may God bless
0 votes Thank Flag Link Tue Oct 9, 2012
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