Look Before You Leap – Usually

home-inspectionIn the current seller’s market in Orange County, a buyer may be tempted to write an offer before they actually preview it. I do not recommend you do this! You may be tempted to do so since competition is so fierce, and other buyers are making offers subject to inspection. If you do decide to do this, keep a couple things in mind…

Homes are usually not perfect. They may need new appliances, a new roof, have water damage or need some termite work done. These are not low-cost items. Take the age of the home into consideration and the likelihood it may have these types of issues before writing an offer sight unseen. If the home is a distress sale (bank-owned or a short sale) then it is more likely to have issues. The owner may not have had the wherewithal to maintain the home if they are behind in their payments. Sometimes a seller may fix a few things or provide a buyer with a credit after a home inspection discloses issues. But with a distress sale, this may not be an option. Sometimes a seller may not be in a position to fix things nor will they be motivated to provide a credit, especially if other buyers are waiting in line to buy it if you back out.

Sometimes a seller’s agent will not even consider an offer from a buyer who has not even seen the home. They know there is a higher likelihood of this type of buyer backing out or causing issues in escrow due to the risks being taken.

If you are confident of the home’s condition and are familiar with the floor plan and neighborhood, and have some extra cash to make repairs and are motivated enough to take a risk, then it might be the right move for you….especially in this crazy seller’s market.

Values of Condos and Townhomes on the Rise – in a Big Way – in South OC

Orange County CondoIf you currently own a condo or townhome or an attached home valued at under $500,000, your home value is on the rise. Buyers are out there in DROVES, clamoring for a South Orange County home in this price range. Every condo or townhome receives multiple offers in Orange County. They are on the market for just a few days, receive about five or six offers (or more), and then enter into escrow. This is the case whether a short sale or a regular equity sale. This has been the case for several months now, and this activity is not lessening. It is causing values of these types of homes to rise in a big way.

For every condo that gets 5 or six offers, there are 4 or 5 home buyers out there still in need of a property. The law of supply and demand is putting upward pressure on home prices.

Condos that were selling at $240,000 at the beginning of the year are now selling around $270,000.  Condos that were selling at $315,000 at the beginning of the year are now selling around $340,000.  This is huge.

If you are a buyer, you need to stop waffling and start writing offers. If you are a seller, you can confidently sell and should purchase your upleg home before those prices experience such a rise.

If you own a condo or townhome in South Orange County, I have buyers right now!  Call me today! 949.525.5905.

Orange County Short Sales and Bank-Owned Homes

Orange County CondosA lot of folks ask me about the foreclosure market and the inventory of bank-owned homes.  I decided to look into the numbers and create a chart showing the market data for both types of homes. I went back 18 months and charted the data for 1) bank-owned homes and 2) homes that are selling “short” and are in the foreclosure process.

Click here to see the data for the past 18 months for all bank-owned residential properties in Orange County.

Click here to see the data for the past 18 months for all Orange County residential properties in the short sale or pre-foreclosure process or have a notice of default.

There has been a dramatic drop in both types of inventory.  Buyers have been most eager to take advantage of this type of property listing. Is the drop just because banks are holding off foreclosing? Truly doubtful. Not for this kind of drop. As we get further away from 2007-2008, the fewer homes we will see going into foreclosure and an increasing amount of buyers gobbling up the inventory, especially investors. You can see in both cases, there are more homes in escrow than are available for sale. There are simply not enough of this type of property for sale. Demand is high as first-time buyers and investors see the wisdom in making a purchase right now as rental rates continue to rise.

If you want to see what types of bank-owned homes or short sales may be available, call me today! 949.525.5905