The most expensive home for sale in Tracy is a unique property situated right next to water with 3 bedrooms, 2 bath, 2700 Sq. ft. in size with many out buildings on a 5.16 acre lot. Listing price: $1,500,000.
TheNational Association of REALTORS® has announced that there’s a housing supply shortage. Homes are selling quickly and home prices are starting to inch up again. It’s becoming a seller’s market in many areas.
Any time the market changes, it’s time to change strategies. During a buyer’s market, buyers have the upper hand and can make more demands to sellers over their homes’ price and condition. During a sellers’ market, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms.
When homes are in short supply, buyers don’t have the luxury of taking their time, teasing sellers with lowball offers, demanding that every little thing be fixed, and shopping for homes with multiple real estate agents. Do these five steps instead.
Make a good first impression. Not only do you need to impress sellers, you need to impress real estate agents. Hire one agent and let him or her profile your needs to the marketplace. Be specific about your must-haves so you don’t waste your agent’s and your time viewing homes that lack what you want most. When you find the home you want, send the seller a letter along with your offer outlining why you love the home.
Get preapproved by a lender. Not only will you know how much home you can buy, you’ll be ready to make an offer quickly. Your real estate agent can include the fact that you’re financially preapproved by your lender in with the offer, which will carry weight with the seller.
Shop within your price range. In a seller’s market, it’s wise to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. You’ll be able to pay your own closing costs. Trying to buy a home out of your reach during a seller’s market will only cause you and your agent frustration.
Be flexible. No home is perfect. To get more home for your money, you might shop for an older home that needs renovation. Try to look past ugly wallpaper and stained carpet and visualize the home with more attractive finishes. You may be able to get more living space in an established neighborhood than with a newer home that is priced higher for similar square footage.
Be ready. Be ready to see a new listing at a moment’s notice. Be ready to make an offer when you believe this is the right home for your household. Once a seller has accepted your offer, proceed as if you’re in a normal market. Set a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with your lender. Schedule the inspections you’ll need and don’t nitpick the seller over small things.
Whether you’re in a buyer’s market or a seller’s market, you should feel good about the home you choose, the deal you make, and the courteous way you treated all parties to the transaction.
Written by Blanche Evans
How to Make A Purchase Offer On A Home
You’re ready to make an offer on the home of your dreams. But before you do, make sure you’re really ready. Ask yourself and your household members if this is the home for the next five or so years. Make sure everyone is on board with commitments to make it work, from putting off the dream vacation to putting in the elbow grease to clean, paint and do the yard work.
Have your real estate agent pull up the most recent sold comparables (CMA) within a reasonable radius of the home, so you can compare the home with other similar homes in terms of location, size, features, and amenities.
Next, consider the most current market conditions, so you can choose the right offer strategy.
In a buyer’s market, discounts are common because there are fewer buyers, more properties for sale, and home prices are soft or falling so offers under list price are common.
In a seller’s market, homes sell quickly for full price or higher because there are plenty of buyers and few homes for sale.
Whether you are in a buyer’s market or a seller’s market, your goal is to buy the home at a fair price. If you were the seller, what is the lowest possible price you’d accept?
To show the seller you’re serious, include a copy of your lender’s pre-approval letter, along with a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and why you love this home. Include a copy of the comparables you used to show why your offer is a fair price for the property.
If the seller’s home is offered at a reasonable price, don’t waste time. Pay asking price or close to it. A home priced to sell will sell quickly and you’ll lose it if you mess around.
Offering too little for a property is risky. If the seller feels insulted by your offer, you’ve lost the opportunity to negotiate. On the other hand, some sellers are simply unrealistic about their home’s value. Maybe your offer will be their wake-up call. The seller will probably respond with a face-saving still-high offer, but at least they’re negotiating with you.
If your offer is conditional, such as your need to sell another home before closing on the seller’s, you’ll have to find a way to sweeten the deal, such as a full-price offer. Few sellers will accept a discount and a contingency.
Your real estate professional will help you draft the offer with a price, estimated closing date and terms, including earnest money (a guarantee that you’ll perform as a buyer in good faith,) final approval by your lender and your right to have an inspection. Your earnest money check will be forwarded to the escrow agent when your offer is accepted.
You’ll have a brief period to get your home inspections completed. Your home inspector will go through the home with you and point out the condition and potential lifespan of all systems and appliances. You should only renegotiate when a problem wasn’t obvious before, or when a system is found to be unsafe or not functioning.
Written by Blanche Evans
Five Ways Bargain Hunting For Homes Can Backfire
It’s natural to want to save money when you’re making a purchase as large as a home. You want to buy the best home in the best neighborhood at the best price, and to do that, you may think you have to shop in the bargain bin.
FSBOs (for sale by owner,) foreclosures, and short sales aren’t as plentiful as equity listed homes — homes listed with a real estate agent by the seller. You may even scour the MLS (multiple listing service) for signs of desperate sellers, such as homes priced AS-IS, or homes that have been on the market for months. Continue reading
Buyer’s Advice: Who’s Got Your Back?
If you’re like some buyers, you may be shopping for a home to buy without using a real estate agent of your own. You don’t trust agents, and you want to shop on your own time at your own pace without some agent pressuring you to buy something you don’t want. They’re just salespeople, right? Continue reading
Three Foolproof Ways To Choose Your Neighborhood And Up Your Value
Deciding where to buy a home can be one of the most difficult decisions to make. If you have a built-in reason to choose one area over another (it’s close to work; it’s where you grew up and you’re emotionally tied to it; there’s a rumor about a professional football team coming soon), it can be easier. But for the rest of us, a multitude of factors can make the choice challenging.
So how do you know where to buy if you’ve got value in mind? Here are a couple schools of thought. Continue reading
Why CMAs and Appraisals Aren’t The Same As part of the homebuying process, your real estate agent may create a comprehensive market analysis or CMA. Later, when you apply for a mortgage, a bank appraisal is conducted by a licensed appraiser. Are CMAs and appraisals the same thing? Continue reading
Fraddie Mac and Fannie Mae made it easier to purchase a home by helping potential home buyers with lower down payment requirement…
to read more details click here
With the legislation passed that extends the homebuyer tax credit until April 30th, 2010, you have a great opportunity to get into a new home this year. Continue reading