A Seller’s Market – Creating a Competitive Offer

Blog, Buyer, Real Estate
In San Diego's real estate market today, seller's are receiving multiple offers on their homes, creating bidding wars for buyers.  This is what you would call a seller's market, a market where the amount of buyers is greater than the amount of sellers.  Due to the amount of demand on homes, buyers are facing more competition and homes are selling above list price.  These days you need to have your offer stand out from the rest.  Here are a few ways to make your offer more attractive: Make a Competitive Offer In a seller's market, you need to make a competitive offer.  There's too much competition for you to low ball and hope they'll negotiate.  Make your best offer upfront. Increase your Earnest Deposit Your earnest deposit is a deposit…
Read More

2017 San Diego Loan Limit Changes

Blog, Buyer, Financing, Real Estate
There are usually three types of mortgages: conventional, high balance and jumbo.  The loan limits for these mortgages will be increased starting Jan 1, 2017.  Here's a breakdown of what it will look like in 2017: Conventional - up to $424,100 High Balance - $424,100 - $612,950 Jumbo - above $612,950 In general, the conventional loan will have the lowest interest rate.  When banks talk about interest rates, they are usually referring to the conventional loan rate.  Any loan amount above the conventional loan limit introduces more risk to the bank.  Due to this, they normally charge a higher interest rate and have stricter underwriting guidelines.  High balance loans will normally have a higher interest rate than the conventional loan and jumbo loans will generally have a higher interest rate…
Read More

Buying with Emotion

Buyer
Buying a home is probably the largest purchase you’ll ever have to make. An investment that large is extremely personal. Getting emotional will come naturally and it could get you in trouble. Here are emotional mistakes that homebuyers often make: Falling in love with a house Ideally, most buyers should look at five to seven properties before making an offer. If you happen to fall in love with the first home you see, make sure you inspect the property thoroughly and try to find the flaws. Sooner or later, you’ll learn that no home is perfect. Make sure you find a home based on what you need. Otherwise, you’ll realize you overpaid for a home that doesn’t meet your needs and that will be difficult to sell for a reasonable…
Read More

Patient and Decisive

Buyer
Record low interest rates are drawing in a lot of buyers. Owners of foreclosed homes during the real estate crash are now ready to buy. Investors are also ready to buy with all cash offers. The amount of buyers in the market are increasing the demand for property. Unfortunately, the San Diego market is being constrained by it’s low inventory levels, thus increasing the selling price of every home. In this type of market, buyers need to do two things: be patient and be decisive. Be patient and do NOT make an offer if the home does not meet all your minimum criteria. Do think, “There will be another home that meets my criteria. I just need to be patient.” Although the housing inventory is low, you should not settle on a home that…
Read More