While in a normal year the real estate market sees a cool down as we head into the cozier months of the year, this years market is experiencing a increase in encouraged home buyers looking for a good deal. One of the major factors is the recent increase in mortgage rates over the past few months which have caused home sales to slow up just a bit to the point where few listings are taking longer to sell and the investors have fallen back. Current rates have motivated people to get off the sidelines and take advantage of the current mortgage rates which compared to pre economic downturn rates are still low. Currently a 30 year fixed rate mortgage in California is 4.40 APR, a 10 point decrease from the beginning of September.
If you are one of those who wish to find a good deal during this time of year, here are a few tips to keep in mind.
1. Pre Approval Letter is your friend- Most sellers will not entertain offers without proof of funds.
2. Not the Obvious Location- Look for the homes that are being looked over by the masses. Looking in the most saturated neighborhoods will not get you the deal you may be looking for. Instead look at alternative areas that are still within reasonable distance and still offer some upside.
3. Sacrifice goes a long way- We all want the house with the immaculate space and cool features that make us feel like we are keeping up with the Jones's. Instead of going for the gusto of a real estate purchase, keep an open mind on the homes that may appear not as appealing as the more popular builds but may have the acreage and flexibility within the flow of the home to create your own mini mtv crib (remember that show on mtv?) over time.
4. Worst Case Scenarios- Keep in mind that the worst weather is towards the end of the year and beginning of the new year here in California. Are the gutters efficient? Are you close to a levy that can be suspect during a bad storm? In the event of a flood, how far will the water travel up my driveway? How many neighboring trees do i have to account for with regards to keeping my lush green yard looking nice? All these are valid questions that one should consider during their home search and negotiation.
5. Hardware stores tend to slow around this time- So you are kind of disappointed that you had to settle for some dated counter tops or the fact that the storage space you were hoping for was sacrificed off of your must have list. If the house listing you chose is a kitchen upgrade or central air system away from being a dream home, home stores and builders are discounting their inventory around this time of year and letting a lot of your essentials go cheaply.
Until Next Time............ À tout à l'heure
