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State of the San Diego Market - 04/26/09
The San Diego real estate market is currently very wild and basically untamed. We are overloaded with foreclosed homes that are an embarrassment to show and generate a (false?) sense of perceived value ~ because the banks are very crafty at pricing them low. Low prices signal value to a buyer, but that's a false sense of security. Those prices bring out anxious buyers who want to buy! But there are many other buyers just like them and the bidding begins.
The process of asking a buyer for their "highest and best" offer when their first offer has been basically ignored is shameful, and we look forward to a time in the market when proper counter offers are written and calls are returned. The REO market is not for the faint-hearted buyer.
The most protracted sales process today is the short sale - where the bank agrees to take less than what is owed, but often with tax and certainly credit consequences to the seller. Banks are relucant to do this, however, for a multitude of reasons, and will often decide to take a chance to get more money on the open market...and will then foreclose on the homeowner, leaving buyers (who have been waiting months for a answer to their offer) out in the cold.
There are not as many out there as buyers would like, but the elusive "equity" seller is really in a great position. First, they can properly negotiate a contract with a buyer and show some real manners. And two, the buyers will feel less stressed because there's a helpful agent and open minded seller on the other end of the deal. Hopefully those deals get to the closing table fastest. When the seller has some money in the game, it makes it better for everyone.
We'd like to see cold-feet buyers sit on the sidelines for a while. This is simply not your time! If you have not really decided to buy a home, please wait. The market is full of "ready to go" buyers with a pre-approval letter in hand. Not a silly pre-qualification letter. Those are completely worthless! If you haven't been pre-approved, stay home.
It's an aggressive time in San Diego, but deals are getting done. Yes, the majority are distressed REO properties, but we see more and more equity sales inching back into the foray.
We have another couple rounds of massive foreclosures coming. Wait for it....if that's what you want.
It's amazing how many homes sell through an open house. You won't find a lot of REO homes on the open house circuit because those agents couldn't care less about holding the property open. If you are lucky enough to find a house you love through an open house, for goodness sake, check with your lender to make sure your pre-approval is still valid...then speak to your agent and jump in!
Email us with questions and special tips on writing the perfect offer. We want to help you get your new set of house keys. Then you can cruise open houses on the weekend just for fun!
The process of asking a buyer for their "highest and best" offer when their first offer has been basically ignored is shameful, and we look forward to a time in the market when proper counter offers are written and calls are returned. The REO market is not for the faint-hearted buyer.
The most protracted sales process today is the short sale - where the bank agrees to take less than what is owed, but often with tax and certainly credit consequences to the seller. Banks are relucant to do this, however, for a multitude of reasons, and will often decide to take a chance to get more money on the open market...and will then foreclose on the homeowner, leaving buyers (who have been waiting months for a answer to their offer) out in the cold.
There are not as many out there as buyers would like, but the elusive "equity" seller is really in a great position. First, they can properly negotiate a contract with a buyer and show some real manners. And two, the buyers will feel less stressed because there's a helpful agent and open minded seller on the other end of the deal. Hopefully those deals get to the closing table fastest. When the seller has some money in the game, it makes it better for everyone.
We'd like to see cold-feet buyers sit on the sidelines for a while. This is simply not your time! If you have not really decided to buy a home, please wait. The market is full of "ready to go" buyers with a pre-approval letter in hand. Not a silly pre-qualification letter. Those are completely worthless! If you haven't been pre-approved, stay home.
It's an aggressive time in San Diego, but deals are getting done. Yes, the majority are distressed REO properties, but we see more and more equity sales inching back into the foray.
We have another couple rounds of massive foreclosures coming. Wait for it....if that's what you want.
It's amazing how many homes sell through an open house. You won't find a lot of REO homes on the open house circuit because those agents couldn't care less about holding the property open. If you are lucky enough to find a house you love through an open house, for goodness sake, check with your lender to make sure your pre-approval is still valid...then speak to your agent and jump in!
Email us with questions and special tips on writing the perfect offer. We want to help you get your new set of house keys. Then you can cruise open houses on the weekend just for fun!
Article by Open House Genie
Copyright 2009
Used, copied or quoted with permission only.
Copyright 2009
Used, copied or quoted with permission only.