Christine Ch…, Home Buyer in San Jose, CA

Does right now still a good time to buy? The inventory is low and the price is not based on CMA anymore. I kept losing the bid and what can I do now?

Asked by Christine Chen, San Jose, CA Tue Feb 19, 2013

This question was asked from http://www.trulia.com/property/3109196269-5368-Borneo-Cir-Sa…

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7
Shanna Rogers’ answer
Hi ferdiween,

Don't give up! Now is a good time to buy because prices are starting to go up. If you wait, you may end up paying more. Just keep trying.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Feb 19, 2013
Thanks Shanna, I am worried the market will crash like couple years ago. Some agents said in summer will be more houses but will the price drop or keep going up in your professional opinion?
Flag Tue Feb 19, 2013
I personally think its a great time to buy. Even though prices seem to be high, they are continuing to go up. Wouldn't you rather buy when the market is on an up swing?

Travis Jackson
Century 21 M & M Associates
DRE# 01879566
Tjackson@c21mm.com
http://www.408RealEstate.com
1 vote Thank Flag Link Wed Feb 20, 2013
Hi Ferdie and thanks for your question.

Frankly, I think this YEAR is probably a good time to buy, however, right NOW may not be the most opportune time, especially if you have a very specific housing budget. Because inventory is low, in areas that have traditionally been very popular, the pricing is far greater than we would expect under normal circumstances. So for those who are selling, it is very definitely a "seller's market" and home values are skyrocketing into areas that even we, as Realtors, might not easily expect.

As for CMA or Comparative Market Analysis, this report should be viewed, not as the definitive manual for the actual price, but as a guide for the "range" of prices that might be expected in the area. Keep in mind that CMAs are "backward" looking, so it doesn't take into account declining home inventory or increasing buyer interest, so pricing will exceed what may have been garnered by sellers in the past.

At present, unless you have a housing budget that can exceed the stated price by 10 percent or more, then you might want to wait for just a bit until there are more homes on the market to help relieve some of the pressure. You will risk the very real possibility that housing prices will continue to rise, but, frankly, right now, unless you are willing to give up all the contingencies, come in with a huge down payment or all cash, or can bid to the moon for the price, even if you want to buy the home, you might not be able to do so.

So look at homes and get a feel for the properties in the area, the neighborhood, the floor plans in a particular housing tract, and the number of buyers interested in a home. Check to see what the home sold for later, and work with a great agent to help you better understand the market. Once you know this, you will be prepared to walk into a bidding situation with open eyes and mental fortitude needed to make the very real commitment to purchase a home.

Good luck!
Grace Morioka
Allison James Estates & Homes
1 vote Thank Flag Link Tue Feb 19, 2013
The best time to buy is when it is right for you. Real estate prices tend to go up over the long term. It can be a wonderful investment, in the long run. This of course depends on you and your reasons for wanting to buy a home. If you are looking for an investment property, you should do the financial calculations to determine your estimated return.

If you are looking to buy a home for you, and you want to build up equity over time, then any time is a good time to buy. Don't panic, keep trying, and make sure you stay within budget. If you find you are continually outbid, then perhaps you should look at a different type of home or a different community. Talk with your realtor and lender for new strategies.

Good luck!
1 vote Thank Flag Link Tue Feb 19, 2013
Ferdiewen,

The best thing to do is keep pushing on and making offers. One thing is certain: the interest rates will not stay this low and will continue to rise, making money more expensive to borrow.

Perhaps you should have a strategy and identify and pursue properties that are not the ones that everyone wants. There are properties that need a little TLC or may have fallen out of contract for a variety of reasons. Rather than trying to go after the property that everyone else wants, go after the ones that are priced too high to begin with and are doing price reductions, those will be easier to negotiate than the ones with multiple offers.

The key is to have a strategy. The strategy you had does not seem to be working, so make alterations and try a different approach. Perhaps you will have better luck that way.


Steve Mun Group
http://www.stevemungroup.com
1 vote Thank Flag Link Tue Feb 19, 2013
Despite extremely low inventory, now is a good time to buy in many South Bay neighborhoods. Interest rates remain extremely low, historically speaking. Most - but not all - areas in and around San Jose are still relatively affordable compared to their bubble peaks. Cupertino, Palo Alto and Menlo Park are among the areas where prices already have soared to historic highs. But some very liveable areas, from Blossom Valley to Almaden Valley and Cambrian Park, are still well off their peak prices.
0 votes Thank Flag Link Tue Jun 18, 2013
Thank you for your question:

Yes. Now is a good time to buy. We have pent up demand from the last few years when it was very difficult to sell a property. Many people postponed their purchases of a home because the economy and the job market was so uncertain.

Many people put off buying homes because they did not know if they would lose their jobs in the next round of layoffs. Now that the economy is rebounding and people are more confident that they will be able to keep their jobs, we now have large numbers of people jumping back into the Real Estate market at the same time. That is forcing prices up at a rapid rate. Any property that is desirable and is in a desirable location has multiple offers and overbids over the list price and over the closed sale prices of recent sales.

Currently it is not uncommon for a property to sell for 5 to 10% more than the closed sales prices of recently closed sales of similar properties. In most cases if the property does not appraise, the buyer is required to make up the difference between the appraised value and the amount of the offer that was accepted.

It appears that this trend will continue for some time.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes Thank Flag Link Tue Feb 19, 2013
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