home buying tips
When you see Sacramento’s median housing price rose to $317,000 for April, you might wonder what you can buy for that and where can you buy it? Some of you might question whether we’re headed for a bubble, but that’s unlikely. Our median housing price was $374,000 at the height of the market in the summer of 2005. We’re a ways from that. Plus, lending is too restrictive now and many buyers are paying cash. If you’re thinking “bubble” forget those thoughts. Can’t blame the bubble.
Word on the street is agents need to tell their Sacramento home buyers in escrow to stay there because the grass is not greener on the other side. It’s not going to get any easier to buy a home if they cancel an existing escrow, it will be worse. The main problem is too many buyers and not enough listings. If a buyer is working with an experienced Realtor, that buyer can expect to buy a home the first or second go around if they listen to their agent. If they try to go it alone and don’t follow an expert’s advice, they won’t get a home. Simple as that.
Dear Sacramento Buyer’s Agent:
Thank you for showing my listing and asking about how the seller will handle offers with a Sunday Open House on the horizon. Oh, and thank you for sharing your buyer is fully qualified through The Internet Lender. I would be remiss if I didn’t share my opinion of The Internet Lender. It doesn’t necessarily mean your buyer is qualified. We’ve all had transactions with internet lenders fall apart because the monkey, excuse me, I meant monkeyfied mortgage loan officer, did not take the time to thoroughly scrutinize the loan application.
Such a relief that I am not on the receiving end anymore when a buyer freaks out, but I do feel the ramifications when it’s the buyer in my transaction with cold feet and it’s my seller who is affected. In this instance, it’s neither of those situations, which is why I can tell you what happened. Because it’s not my transaction. But it is a transaction that almost happened, then didn’t, then got yanked out of the fire and resurrected.
Say an agent has a home listed in Fair Oaks. Along comes a buyer, the offer is accepted and escrow is opened. Then the buyer’s appraisal comes in for less than list price, and the seller decides to let that buyer go along his or her merry little way. New buyer pops into the picture. Writes an offer agreeing to bridge any difference in appraised value, but whoa! The appraisal comes in not at the previous appraised price like expected but another $30K less.
What home buyers don’t know about a loan contingency can come back to bite. It’s not just home buyers in Sacramento who might not understand how a loan contingency works, either, it’s also some of the mortgage lenders. I can’t count the number of times I’ve heard a mortgage loan officer tell a borrower on the due date, we’re not ready to release the loan contingency yet. What?
If I get wind of it, as a Sacramento listing agent, you can bet hell is gonna break loose. For starters, I represent the seller, not the buyer. If the buyer is not ready to release her loan contingency on the date it is due because her lender is dragging feet or her lender feels “uncomfortable,” that is not my seller’s problem. It is not my problem, either. It is the buyer’s problem.