Casey Spencer, Realtor®
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:
- "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.
- 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.
- 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!
- 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).
- 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.
- 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.
- 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