Archive December 2009
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6 tips for buying foreclosures
There are a lot of great deals in Santa Clarita and Castaic, but buyers beware: Purchasing a foreclosure is rife with pitfalls.
1. Don't get caught up in a feeding frenzy
Everybody and their grandmas are trying to buy foreclosures.
Those lowball prices represent golden opportunities, but they also attract dozens of buyers who may bid until homes are no longer bargains.
Don't get caught up in a bidding war. Instead, carefully calculate what you want to spend and do not exceed that price.
2. Get pre-approved from the lender you want to buy from
If you're trying to buy a property from, say Bank of America, it can help to get a pre-approved mortgage from Bank of America. Doing so may cause lenders to look more favorably on your bid if it's similar to others.
Plus, you're not locked in if other lenders offer you better terms. You can always change your mind and get your mortgage from another source.
4. Consider fix-ups
Most REOs, the industry term for bank owned properties, are sold as is. Most banks will do nothing to the houses before the sale. Somtimes they will let the buyer complete lender required repairs and sometimes they will even pay for them. We just closed a house in Acton where this was the case.
Often, the former owners were struggling to pay their bills and may have neglected routine maintenance or they may have trashed the properties before leaving
So be willing to consider a home that needs some work -- but budget accordingly.
5. Hire a real estate attorney
Once banks agree to sales, they often want to move fast and load contracts up with legal mumbo jumbo. As a result, buyers often do not have the time or expertise to figure all the angles.
The solution is to hire a real estate attorney -- even in states where home sales are usually completed without one. Considering you're making a six-figure investment, the legal fees are cheap insurance against the risks. At Two 4 One Audra Call is our in house real estate attorney.
6. Wait to make an offer?
Homebuyers may be well served to wait before making an offer but in recent days in Santa Clarita most are sold within a week.
Are Santa Clarita Home Prices Holding?
While the rest of the counrty is down an average of 7.3% Los Angeles is up. In fact it was one of only 7 cities that saw month to month gains. I agree with the findings of the repot below. Most of the homes Two 4 One Real of Santa Clarita are selling within days and we see no signs of slowing. The article below was writen by
The S&P/Case Shiller Home Price index, covering 20 of the largest metropolitan areas in the nation, was unchanged in October, after four consecutive months of gains. The index is down 7.3% from 12 months earlier.
"The turnaround in home prices seen in the spring and summer has faded," said David Blitzer, chairman of the Index Committee at Standard & Poor's, in a statement. "Coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip," he said.
Just seven of the 20 cities recorded gains from a month earlier.
The modest gains earlier this year were in part propped up by government initiatives.
"We've seen recent stability because of low interest rates and the impact of the first-time homebuyers tax credit," said Pat Newport, a real estate analyst with IHS Global Insight.
Prices are down from their all-time highs set in 2006 by 29% for the 20-city index.
Among the 20 cities, the worst tumble was taken by Tampa during the month. Prices fell 1.6% from September. Chicago and Atlanta recorded 1% losses.
The biggest gainers were Phoenix, up 1.3%, and San Francisco, up 1.2%.
Las Vegas sellers continued to bleed. Prices there fell just 0.1% but that marked the 38th straight monthly decline. The market in Sin City is off 55.4% from its peak. You can buy a home in Las Vegas for the same price it sold for in October of 2000.
"In most of the hardest-hit markets, price declines are moderating," said Mike Larson, an analyst with Weiss Research.
Los Angeles recorded a rise of 0.3% and San Diego prices gained 0.4%. Miami, however, declined by 0.4%.
According to Larson, falling supplies of homes on the market are helping to stabilize conditions. "Inventories are plunging on the new-home side and going down for existing homes," he said.
Not that he's ready to break out the champagne, even with the New Year close at hand. "The market is recovering but it will be an anemic recovery," he said
