Casey Spencer, Realtor®

 

     www.CaseySpencer.com

 

 

 

                                                    How to BUY LOW!                            Summer 2014

 

When prospective homebuyers warn me, “We’re only buying if we can get a great deal,” I want them to know: I AGREE!

 

Beginning in 2007, values plunged down, down, down…for five years straight.  Buyers are now enjoying historically low-priced homes . . . more affordable than they have been in 5-7 years or more.

.  The Sacramento region is now in a robust rebound - - - by some reports, it’s in the Top Two “Rebound Regions” in the USA. Our “foothills” area is lagging behind this pace but surely increasing!  In fact, the arguably-reliable real-estate website Zillow predicts home values will increase in Auburn-Meadow-Vista-Colfax area by at least 14% over the coming year.

YES, a great deal is important . . . if you truly want the property!  

 

LOW offers are best when they’re STRONG in other ways - - - raising the odds of acceptance. This means:

 

  1. "Cash is King." If you have access to cash, use it to obtain the lowest price.  If you have a HELOC (home-equity line of credit) available on another property, consider using it to buy fast, and obtain a mortgage later if necessary. 
  2. Most homes are bought with a mortgage, of course.  Be sure to have your lender pre-qualify you . . . or better yet, get pre-approved by completing the application process prior to finding "The House." We can introduce you to several excellent lenders who give our clients consistently great service.
  3. Submit a meaningful deposit (at least 1%-2% of the home's price).  Remember that a "good-faith" deposit is typically if you cancel during your initial "inspection contingency" period . . . this is a 17-day period in the standard California purchase agreement . . . but keep reading!
  4. Offer a short closing date (30 days maximum).  If you're buying with cash (or your lender has pre-approved you), a powerful strategy  is to offer a close of escrow in 10-20 days!  This is most effective when buying a vacant home offered by a conventional seller. For an occupied, home, consider a “rent back” agreement with sufficient protections to avid post-closing hassles for YOU, the short-term landlord.(ask for details).
  5. The hardest-charging negotiators ask for NO repairs or cleanup!  While I strongly encourage all buyers to thoroughly inspect their purchase using suitable professionals, sellers want an “As Is” buyer and will usually favor such offers. 
  6. Offer an inspection contingency period shorter than the standard 17 days.  I know and recommend multiple responsive vendors who often provide professional inspections in just a few days.
  7. When buying a bank-owned or “REO” home, refer to my article, “How to buy a bank-owned property” to help manage your expectations and WIN in that game.  Realize that banks do not behave like desperate sellers!  It’s true: they have no desire to hold a property any longer than necessary…but if you try to circumvent the “REO Rules of the Road,” you’ll probably come up empty-handed. 

 

All of these strength-builders can sweeten the taste of your "lowball" offer.   Call me when you’re ready to deal!

 

 

 

Thoughtful and Innovative:  www.CaseySpencer.com

 

Office, Mobile & text: 530.277.6405                     Casey@CaseySpencer.com                                                    D.R.E. License #01437910

 16770 Placer Hills Road, Meadow Vista CA 95722                               Brokerage office: 373 Elm Avenue Suite #300 Auburn CA, 95603