Should we buy the condo in Glendale or wait it out?

Asked by Annapalindrome, 90027 Mon Jul 28, 2008

We are first time home buyers and newlyweds looking to buy our first home. We found a great deal 290,000 for a 2 br, 2.5 bth condo in Glendale, but since it was a short sale we have been waiting and watching the interest rates go higher and higher and surrounding prices drop lower over the past 45 days that it has taken to get the final approval from the lender. We should get approved in the next few days, but I'm starting to doubt our decision. Would it be wiser to wait for a SFR to drop into our 350,000 price range or try to get a better deal? Is this still a good deal even though interest rates have risen so much? We have about 60,000 for a down payment, we just want to make the right decision. Thanks for any advice!

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13
Bradley Neum…, Mortgage Broker Or Lender, Franklin, TN
Thu May 1, 2014
You can run into a lot of problems with condo associations or lack of tenants in a condominum complex. I would buy a SFR if you can wait.

For mortgage help, call (855) 893-1177 or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states and you can apply online at http://www.myccmortgage.com. We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 893-1177.

Brad Neumann
Branch Manager
Crosscountry Mortgage Inc.
Phone: (855) 893-1177
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes
Taylor Cress…, Agent, Palm Harbor, FL
Wed Apr 30, 2014
I would be glad to discuss it in more detail with you, if you call/text me at (424) 302-8008 or email me (taylor@topsocalrealtor.com), and we can go over the advantages of purchasing this condo!

Feel free to also check out

http://www.topsocalrealtor.com

For some FREE informative articles & reports for sellers.

Also http://www.taylorcresswell.com has properties that are currently available for sale.

Taylor Cresswell
Real Estate Agent
BRE# 01945015
(424) 302-8008
taylor@topsocalrealtor.com
0 votes
This question was asked 6 years ago. I imagine they have made a decision by now :)
Flag Thu May 1, 2014
Art Oktanian, Agent, North Hollywood, CA
Thu Apr 24, 2014
You should always buy any real estate anytime you can afford it, especially in Glendale. It is one of the safest and cleanest cities in the LA area.
0 votes
David Krecker, Landlord, Whittier, CA
Sun Nov 9, 2008
I would always challenge your decision. As a broker and licensed appraiser I can only tell you the values out there are always suspect. Work with those that can truly determine the right offer. Just because its a shortsale or reo don't think your getting a deal. I can't tell you how many times I have found these supposed deals turn sour for peoplke... If I can assist you further let me know

Dave
Web Reference:  http://www.centuryside.com
0 votes
Liz Barkhord…, , Glendale, CA
Sat Nov 8, 2008
Hey Annapalindrome !
If you're still in the market for that $350,000 SFH in Glendale give me a call ... we're getting there.
Small and might need a little TLC but there are some out there now.
Cheers, Liz
(818) 331-6503
LizBarkhordarian@charter.net
0 votes
Igor Korosec, Agent, Los Angeles, CA
Thu Nov 6, 2008
Hi there,

I am currently dealing with first ime home buyers (newlyweds in March 08) that were looking for a condo in Glendale for months. This week we got an offer accepted (short sale) for a SFR in Lake Balboa. They as well were nervous and started to doubt in their decision. Finally they became comfortable when we ran some in depth analyses on Glendale homes, Lake Balboa homes, Pasadena homes and part of Van Nuys Homes.

When you are dealing with short sales and REO (bank owned properties) make sure that you are represented by a buyers agent who knows how to do those deals and who can explain the whole process to you with all possible options. Foreclosure market in Glendale and surrounding areas has changed drasticly in October 2008 and is continuing to change.

Mortgage rates on the other hand started dropping this week as all my mortgage brokers that I am dealing with are telling me. And they will continue dropping, but nobody knows for how long.

Remember, if you put down 20% of the purchase price you don't need to pay for your mortgage insurance, which is another plus in your particular situation.

I continue to educate myself and read current statistics, which in most cases are a month or two old by the time they hit readers. But based on those statistics, forecasts and my own experiences as a buyer's agent, I strongly believe that the best time to buy will be between now and February 2009.

Call me at 310-499-1305 for more details and to discuss your specific situation. There is no obligation ever to go with me, if you don't feel I am the right real estate consultant to represent you and deal with your hard earned money. On the other hand I also reserve the right not to work with clients that I feel I can't help or I don't feel comfortable with.

Sincerely,

Igor Korosec
0 votes
David Krecker, Landlord, Whittier, CA
Fri Aug 8, 2008
Glendale is a great place. All communities have good and bad.

I am a state licensed appraiser, send me the address and as a agent and state licensed appraiser I'll tell you what its really worth, not what they are asking.....

I am willing to be the realtor of choice for you if you do not already have one. It is of no cost to you. You can send me an email and give me your contact information. I can email you homes in your price range and go from there.

I look forward to working with you. And, if you already have an agent, I wish you the best of luck in your home search!

David Krecker, BSBA, SRA, MRA
Centuryside Real Estate Inc.
David Krecker
Broker/Owner/State License Appraiser
Office 562-690-6987
Fax: 562-690-7337
Serving the areas of Orange County, Los Angeles County, San Bernardino, and Riverside.

Email: dave@centuryside.com
Website: http://www.centuryside.com
Web Reference:  http://www.centuryside.com
0 votes
John Hickey, Agent, La Crescenta, CA
Thu Aug 7, 2008
You always want to be aware of the comps and get as much information as you can. Usually, when a home is offered as a foreclosure your agent will only be able to get limited information about other offers. 1st offer in often has an advantage but it's only worth anything if you understand the current values in the marketplace. Get the comps and use your judgement. Condos are a tough sale right now because there are so many of them. Good luck & go get that condo.

John Hickey
Dilbeck Realtors, GMAC
818-541-7311
John@JohnHickey.com
http://www.LaCrescentaHomes.com
0 votes
Dorene Slavi…, Agent, Torrance, CA
Mon Jul 28, 2008
Oh I know what you mean. I work extensively with buyers..and the interest rates are scary! Short-Sales take longer then normal sales to close.I would not advise waiting as I am seeing homes(particularly short sales) getting numerous offers and above asking price!
Web Reference:  http://www.doreneslavitz.com
0 votes
Monique & Joe…, Agent, Beverly Hills, CA
Mon Jul 28, 2008
Hello,

An important question would be have the prices dropped lower than what your offer was? There are many indicators that we are at the bottom of the drop. We don't know for sure if they will go lower. If you like this condo and still feel it is a good deal, go for it. I don't see single family homes going to $350,000 in Glendale. If you can pay more than $350,000 than always go for a house vs a condo as statistics have proven that the value of homes hold better in declining markets. As a first time buyer though it's important to get in while you can. Prices may fall but they could very well rise. You can always refi your loan should interest rates go down. Good luck with the short sale. I know it's a slow process but the reward is a terrific deal once the bank approves it.

Best,

Monique Carrabba
The Reavis Group
0 votes
Julia Huntsm…, Agent, Long Beach, CA
Mon Jul 28, 2008
Anna, if you contact your lender, he/she can work out for you the difference between taking a loan at a higher interest rate and a lower price, or taking action now. Taking action now or as soon as possible might be your better bet, due to tax reasons and monthly payment. How do know when an SFR will "drop into" your price range? You don't. If you want a house, try looking in areas where you can find one now. There's a big difference between owning a house vs. owning a condo.
And, it's not easy in some areas, but why not try to find a property that's NOT a short sale, so then you might stand a chance of closing in 30 days (depending on the seller's needs, of course). Just something to think about.
Sincerely, Julia Huntsman
http://www.juliahuntsman.com
0 votes
Irina Netcha…, Agent, San Marino, CA
Mon Jul 28, 2008
Hi Annapalindrome,

Glendale is a great area to live and the prices did go down quite a bit over the last year to make it more affordable for first time buyers. The reason that you're seeing more condo/townhome deals is because there have been many new condo/townhome projects going up in Glendale where developers have huge construction loans to pay out and are willing to move these properties fast with great incentives. Of course, the short sales help as well.

With the opening of The Grove in Glendale, the Westfield Mall and a ton of restaurants and businesses, Glendale is a great place to invest. $290K sounds like a good price for a 2 br./2.5 ba condo. I would have your agent run comparables over the last 2 months within a 1/4 mile radius of the location to see if the purchase price makes sense.

Also, consider the length of time that you anticipate holding on to your condo. Do you intend to stay there more than 3 years. If so, you'll more than ride out this market and make a nice profit on it when you sell. Do you love this condo? Remember, even if prices trend down a bit more, it might be hard to find a unit that you love. Take all of that in consideration and don't forget that the condo still needs to appraise for $290K by a bank appraisal so you're protected to a degree there as well.

The interest rates are not anticipated to go up anymore. I think that we've seen them top off through the end of the year and they might still move down slightly by the time you get approval.

Unfortunately, when you deal with short sales, the length of time it takes for the bank to provide approval creates these types of situations.

Good luck with your condo purchase!
0 votes
David Krecker, Landlord, Whittier, CA
Mon Jul 28, 2008
Since 1988 I have been involved in real estate both as owner/broker and a state licensed appraiser. Contact me with the address and I'll advise you what I think its really worth and provide some other suggestions for you. Be carefull regardless as you have many options in this market.....



David Krecker, BSBA, SRA, MRA
Centuryside Real Estate Inc.
David Krecker
Broker/Owner/State License Appraiser
Office 562-690-6987
Fax: 562-690-7337
Serving the areas of Orange County, Los Angeles County, San Bernardino, and Riverside.

Email: dave@centuryside.com
Website: http://www.centuryside.com
Web Reference:  http://www.centuryside.com
0 votes
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