1st Time Buyers - Now is the time to buy - Long Beach Homes and Condos1st Time Buyers-Now is the time to buy Long Beach Homes and Condos-Long Beach Real Estate
Buyers Want to Know
My friend and her husband currently live in a rental and had searched for a home back when the market was sizzling hot. At that time the only homes they might be able to afford would have cost too much to put into livable condition. They were basically priced out of the market. My friend wants to know if now is a good time to buy a house or if they should continue to wait. She expresses concern that homes in the San Fernando Valley are receiving multiple offers. Reading the news has frightened and confused her.
Lets look at this for a minute. Here is a couple who has been expressing a desire to purchase a home for many years. They searched when they really could not afford to buy one, downgraded their search to Fixer Uppers that they also couldn't buy comfortably and then gave up, resigning themselves to living in rent indefinitely without the benefits and rewards of home ownership. This couple represents the same feelings and emotions of many buyers in today's market.
FHA loans can be had with just 3.5% down payment. Conventional loans have been available with just 5% down, this is starting to change now with many lenders beginning to demand 10% down payments, I wouldn't be surprised to see that number go up to 20% by the end of the year. Loan standards are tightening and will continue to do so. As these lenders raise the bar and make loans available to only the most qualified many less qualified buyers will once again be locked out of buying a home, they just won't be able to qualify.
Concern was also expressed about multiple offer situations on homes currently on the market. Multiple offers are a reality in todays real estate market whether you are shopping in the valley or in Long Beach for your new home, while the competition can be fierce for some of the most desirable homes it is still possible to successfully have an offer accepted.
Prices are lower than they have been in years and investors are shopping heavily. Investors are cash heavy and are making enticing offers that banks want to accept. All cash, no demands and the ability to close a deal in 7 to 10 days gets a home off of the banks books fast, clean and easy; they have a lot of homes to sell, it works for them. Buyers with FHA loans are having difficulties getting their offers accepted as they find themselves competing with bigger, better and badder buyers and investors. There are buyers out there right now with great credit and large down payments. It is becoming increasingly difficult to get an offer accepted on highly desirable properties. As this demand grows, sellers will not be so likely to offer concessions of any kind and while prices will remain very desirable the deals will not be as "sweet" as they are with the concessions that are still being made now.
Does this mean that it has become impossible for a buyer to buy a home? Not at all! It just means that you need to have some fortitude to shop in this market, try not to fall in love with the home until your offer is accepted, it will be less painful that way if your offer is not accepted. Don't have standards that are so high that you will not be able to fulfill them when you shop; this doesn't mean that you have to settle and buy a dump either. Expect to write several offers before having one accepted. It takes time for 1st time buyers to wrap themselves around the terms they need to present in order to get an offer accepted. You must write a strong offer if you are going into a multiple offer situation. You will need a strong Realtor, who undertands today's real estate market and knows how to advise you to write your offer for the best chance at having it accepted.
There are some fine homes on the market right now at absolutely incredible prices that we haven't seen in many years. There are loan programs available at interest rates that are almost unbelievable, with sweet terms that won't get you into trouble down the road. The Bank of America (a direct lender) has loan programs that offer mortgage protection and guarantee you won't lose your home if you lose your job, become disabled, hospitalized or God forbid pass away. Given the amount of layoffs across our nation that is an outstanding benefit and a continued source of comfort and peace of mind for home owners.
The big questions buyers need to ask themselves are really quite simple.
The next questions are easier and a lot more fun:
Suggested reading prior to beginning your search:
http://www.longbeachrealestatehome.com/0094C6
Posted on February 20, 2009 21:14:37 by Laurie Manny
 Laurie Manny  2 feedbacks »
Comment from: Mary Pope-Handy [Visitor] · http://www.valleyofheartsdelight.com Hi Laurie, Great insight! We are seeing some of the same things here: rock bottom pricing creating some multiple offers and really confusing buyers. How do your prices today compare to the past? If you were looking at it as a "rollback" in time, to which year or years would today's Long Beach real estate prices compare?  Permalink March 16, 2009 13:24:31Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Hi Mary, Often change begets confusion. With change happening so rapidly in our market it has led to a fair amount of confusion. It wasn't so very long ago that buyers were low-balling offers, asking for large concessions and having success at it. That has all changed now. Pricing strategies are creating multiples offers reminiscent of the past sellers market, concessions are being built into the price and are beginning to disappear. The bulk of the inventory in many of our areas is now REO/Bank owned homes, condos and income properties. The banks are starting to utilize pricing strategies, listing low to create these bidding wars. Smart buyers are understanding that they too need to strategise with their Realtor to have their offers accepted. It sounds like our markets are very similar in the rollback of prices, it does vary a bit between neighborhoods. Long Beach neighborhoods are often vastly different from each other. We are a little short on inventory and have become heavy on buyers shopping at the moment. The Bank of America takeover of Countrywide is official on April 1, 2009. Hearing rumors that Bank of America will soon be releasing the Countrywide foreclosures, that should up the inventory and freshen it up a bit pretty soon. Permalink March 16, 2009 13:51:06Comment on this article This post has no comments awaiting moderation. |
This couple can afford to buy a home now, a nice one. They can get a great interest rate right now and terrific loan terms. Another client of ours, a first time home buyer, was just quoted 4.6% with 1.25 points on a 30 year fixed home loan through a very reputable direct lender; that client has a modest income a good credit score, currently lives in rent and is now in escrow on a fantastic Long Beach Condo - with a view! She will be enjoying the benefits of home ownership finally! 
To begin your search for the perfect home or to sell your home in the Long Beach area, begin your journey by calling Laurie Manny at (562) 212-5420.
