Michael G.Grimm

John,

The way to approach the answer to your question is to seek out the advice of a Realtor. Places like Zillow are somewhat accurate, but can never compare to the analysis a Realtor can do for you. You see all Real Estate is local and prices can differ for several different reasons. In your zip code the house across the street could be the same size with the same number of bedrooms and bathrooms and be substantially worth more because of things like an ocean view or size of the lot for example. Or the opposite could be true your home could be worth substantially more than your neighbor across the street or across town for the very same reasons. Different areas have different selling prices and to be sure your home is priced correctly seek out the advice of a Realtor. Or if your not ready yet, you can go to my website and look up your homes approximate value. Just go to http://www.MGrimm4Homes.com. Let me know if I can help.

Best Regards,
Michael G. Grimm, Realtor - Sun Sep 14 2008, 17:57

Claudia,

You may want to check back with your lender because just last month the FHA will no longer allow seller contributions towards your 3% down payment. The only way you could get your down payment assistance now is to go through the CALHFA program. But yes, when you enter a multiple offer situation, the seller is going to look at all the offers and take two major things into consideration. Which offer will net the seller the most money? And which offer and financing is easiest to work with and close on in the quickest amount of time. What I have seen happening, is that even though sellers are selling their homes for less than they could have sold for a few years ago, they are still walking away from the sales with some cash to put towards their next house. The offers that are winning are those offers that don't ask for a lot of contingencies and that are offering cash down payments. Which means the financing is much easier to work with. I know its a buyers market, but there are still buyers out there like that. I would suggest taking a look at what you are asking for in your offers. Are you asking for closing costs? Do you have contingencies? The 3 % down should come from another source. Can a family member gift you the 3%? By taking out some of your contingencies and things your asking for, you will make your offers more appealing to the seller.

Michael G Grimm - Sat Aug 30 2008, 13:58

Tigran,

When you are looking for a home to purchase as an investment there are several things to consider. What is the proximity of my rental home to apartment buildings/communities? You want to make sure you position yourself so that your not having to compete against large quantities of available apartment units. Some of those apartment complexes might have amenities like pools, gyms, and community club houses. Also how close is my rental home to shopping and schools? Can my tenants walk there? If they have to take their car is it only about 5 minutes away? Availability of shopping is important to potential tenants as they don't like to have to to go very far. Where is the nearest supermarket, shopping center, place to get their hair cut. How close is my rental home to schools? You don't know what grade level your tenants children will be at, so if you can identify an elementary school, middle school, and high school that are close (even within walking distance) all the better. Finally there are a lot of residents in the high desert that work down the hill, so having a rental home near or close to the freeway would be helpful. Taking all of these things into consideration, you could have a successful rental home anywhere. Because potential tenants will be looking for these amenities and will gravitate towards rentals that fit these criteria. And as tenants gravitate towards these types of rentals, rental inventories will go down and rents will go up and stabilize. As an investor thats the type of situation your looking for and doing your research and due diligence will pay off. You can even go to any cities website and read about the building and expansion taking place and the new businesses coming into a particular area. After all, new businesses mean new jobs which means more people who are able to rent.

Best Regards,
Michael G Grimm
Realtor / Investor - Sat Aug 30 2008, 12:46

Mike,

I agree with the previous Realtors, I think you should secure an attorney as soon as possible. Real Estate Brokers should never give financial or legal advice unless they have certifications to do so. Foreclosure proceedings can take a while and should understand what your rights are as a mortgage holder in second position. In the future if a buyers asks you to carry a note, you will want to make sure to consult with your attorney, accountant, and Real Estate Agent/Broker. With the advice of those three professional together you should have a better understanding of what would be in your best interest.

Michael G Grimm - Sat Aug 30 2008, 12:23

Claudia,

PMI stands for Primary Mortgage Insurance and it is required for all loans that are over 80%. The only way to not have PMI is to put 20% down.

Michael G. Grimm
Realtor - Fri Aug 1 2008, 10:31

Claudia,

I think you should check back with your lender to see exactly what down payment assistance program he or she is thinking of using. You mentioned that it was going to be a gift and as recently as this week the FHA said that it is no longer going to allow gifted down payment assistance from sellers. Specifically the HART and Nejemiah programs were some of the programs no longer allowed. However if you are a first time buyer, your lender can get you down payment assistance through CALHFA or CHDAP. These programs are not gifts from the seller, but are instead a silent second mortgage with no monthly payments. So just touch base with your lender to find out exactly what program he or she is going to be using, because that is important for your Relator to know as it has to be incorporated into the offer. But as far as little to no money down programs there are only CALVET and VA Loans which require no down payment.

Michael G. Grimm
Realtor - Fri Aug 1 2008, 10:29