Hi, I'm in the market to buy a home but have been really shocked with the over bidding going on for used homes? Is it good time to buy a new?

Asked by braceanil, Sunnyvale, CA Wed Feb 13, 2013

home now I am looking to buy in the bay area. Preferrable locations are Fremont, Dublin/Pleasanton and North San jose. Please shed some light. Thanks.

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John Juarez’s answer
John Juarez, Agent, Fremont, CA
Mon Feb 18, 2013
You are taken aback by the bidding for “used homes”. Are you not aware that new home builders have taken notice of this bidding? The builders have observed the multiple offers that are taking place for many resale purchases. They know that the inventory of homes that are for sale is very small.

Do you know what is happening in the new home market? Builders are raising their asking prices. Builders are taking “interest lists”, “waiting lists”, and are conducting lotteries to determine who is lucky enough to buy a new home.

Yes…it continues to be a good time to buy a home. That is why so many buyers are trying to do just that. Waiting will likely mean that will pay more in the future and it may cost most to obtain the loan for the more expensive home.
1 vote
Thekbhomedan, Home Buyer, Bradenton, FL
Tue Apr 30, 2013
KB Homes is having a lot of problems in Florida. Are they having the same issues in California? Take a look at some of the pictures and videos are problems these homeowners are experiencing...http://TheKBHome.com
0 votes
Erica Ritter, Home Owner, Cincinnati, OH
Wed Feb 20, 2013
I think the real answer depends on what you like. A used home might have more charm and character than a new build. Just go find what you like and know that it takes you to make it a home!
0 votes
Jasbir Gujral, Mortgage Broker Or Lender, Pleasanton, CA
Tue Feb 19, 2013
Welcome to overbidding and multiple offers game. New builders might make sense but they are also running out of inventory and going higher with new phase.

Jasbir Gujral
Broker
925-425-9491
0 votes
Pacita Dimac…, Agent, Oakland, CA
Wed Feb 13, 2013
Supply and demand

Low supply of homes for sale.
High number of buyers scrambling to buy before interest rates rise again.

The same story everywhere.
If you're thinking of buying, make sure you find a seasoned and resourceful agent who can guide you on how to write a winning offer. Highest price may not always get it -- look at terms and conditions that may put your offer above others.

Many buyers are trying to edge out the competition by writing no-contingency offer. That's a risky move that you probably shouldn't attempt.

Some agents become very adept at sniffing out upcoming listings and try to submit pre-emptive offers. But at a time of possible multiple-offer and over-bidding, the seller may want to wait for other offers to come.
0 votes
Sally Blaze, Agent, Eugene, OR
Wed Feb 13, 2013
Thanks for the question. Many buyers and sellers are amazed by the prices being offered. I think the answers below indicate we are all faced with the same frustrations. At some point in time the market will stabilize and experience a more balanced level of supply and demand.

I am working with several buyers wanting to buy new construction homes. Prices are rising at rates of $10-20,000 a week! And, in one situation we experienced, potential buyers were spending 5-6 days in their car, hoping to be selected for the next release! Each developer requires the buyer to be pre-approved with their own lender. If you go to several developments and do this, make sure it does not impact your credit score. Each developer is different, but often times a new release will be a small number of homes (3-5).

It is crazy right now. Be patient, work closely with your realtor, and like everything, eventually the housing market will stabilize.

Sally Blaze
DRE 01856137
Sblaze@apr.com
0 votes
Meena Gujral, Agent, Pleasanton, CA
Wed Feb 13, 2013
Hello Braceanil,

Inventory is low and the demand is very high. Resale homes are selling with multiple offers way over asking price. I called on one home today in Dublin, they are presenting offers on Friday and they already have 40 offers. It is a very challenging market for buyers and agents.

It makes a lot of sense right now to buy a brand new home. There are many new developments in Dublin and I have already registered 6 clients with the various builders like Standard Pacific, KB homes and DR Horton. It is much easier to buy a brand new home in this market. There is a lot less competition in new homes.

Please make sure you take an agent with you when you go to any new development. The builder pays your agent commission so you get your own agent who can advice you on the good and bad of each builder and the neighborhood. You have a lot to gain and nothing to lose by taking an agent there with you.

Your agent can advice you if the price is good or not. I provide my clients with the comparable sales of the last few phases that the builder sold so the buyer can gauge how the prices have been in that development when compared to the others.

Meena Gujral
Achievers Realty
http://www.helpusellachievers.com
925-425-9491
0 votes
Kanwal Chaud…, , Fremont, CA
Wed Feb 13, 2013
Hi Braceanil
Unfortunately that happens to be the norm these days. The prices are being driven thru the roof by the buyers, because of the low inventory. It is an old scenario of supply and demand and it is predicted that it is going to stay like this for a while. But the main thing is not to get discouraged and keep trying, shortly your boat will come.
Please contact me if you need any more help
Regards
Kanwal Chaudhary
0 votes
Brian Ripp, Agent, Fremont, CA
Wed Feb 13, 2013
As the others have stated, it is a great time to buy. Rates and home prices are low. Although there are many buyers, it will take time and patience - and I know you'll have a great home. Make sure you are prequalified.

Brian
0 votes
John Dutra, , Fremont, CA
Wed Feb 13, 2013
Braceanil,

It is still a good time to buy a home - even a great time to buy a home, but you should be prepared for quite the crowd as you begin to look. As you do so, here are a few suggestions to help you as you look to make an offer on any property:

Find a good realtor. This has to be one of the most critical times in recent history, in which you should research, interview and then depend on a highly qualified and skillful Realtor. Their value cannot be overemphasized. They can help you determine a good value, negotiate with listing agents and have knowledge that when put to use, can make the most of your particular investment and purchase strategy. This includes down payment, appraisal concerns, locations, history of the listing(s) in that area and much more.

Find a good lender. Look for someone that has your interest at heart, listens to your objectives and goals and then works to have you fully approved for the purchase (after having all your ducks in a row). A highly qualified lender with a good name can and will often work to let the listing agent know of your qualifications and needs to be extremely responsive during these competitive times.

Be prepared for failure - This is a very competitive seller's market - don't be easily discouraged, but be prepared to make offers as you come across opportunities. Getting your foot in the door, so to speak, is what is needed to help get your offer accepted.

The market has been turning for at least the last 6 months or more - but we are still just climbing out of the recession. Landing a good home for your family with rates the way they are (still very low), is the goal for all of us who work as professionals in the industry.

Let me know if I can help you in any way - and good luck!
0 votes
Barbara Wils…, Agent, Danville, CA
Wed Feb 13, 2013
There are just very very few homes for sale (very low inventory) and a lot of buyers watching interest rates creep up, and rents skyrocket. I try to be reasonable when I put homes on the market for prices it really will sell for based on previous sales plus a bit, but still I get 5 to 15 offers! and most of them over asking. They are appraising, and there are things both buyer and seller can do if it doesn't.
0 votes
Michael Tess…, Agent, Fremont, CA
Wed Feb 13, 2013
It is a supply and demand issue. Also the Bay Area is one of the hottest job markets in the nation and many companies still doing IPO'S the money to purchase is out there unfortunately not for everyone couple
that with the lowest interest rates and you have the market we are currently in. In my professional opinion after being in real estate her for 29 years if you want to buy a house you need to get in the market and work with a seasoned and experienced agent who can guide you and package your offer to hopefully get it accepted. Should you wish to discuss how I represent buyers feel free to contact me. I wish you luck, Michael
0 votes
Dorene Slavi…, Agent, Torrance, CA
Wed Feb 13, 2013
Dear Braceanil,

I have sold new property and I love to sell new homes. Many if the issues that come up with resale, do not exist in the New Home market at all. The biggest problem I have is finding developments close the Los Angeles, and not way out in the suburbs. Take a look at new homes if they are available in your area.
0 votes
Joe Patel, Agent, San Ramon, CA
Wed Feb 13, 2013
The real estate market is really crazy.Even homes in million dollar range bought with cash.You need good realtor who can tell you the truth about what is going in buyer market.you have to be willing to pay $25K to $100K over asking price to get the home.Attaches is my blog on market analysis of homes in tricities area.good Luck!!!!

http://www.trulia.com/blog/joe_patel/2013/02/inventory_down_…
0 votes
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