San Francisco Area Sells 5,000 To Investors & Home Buyers
March 31, 2009
The market is totally dead, right?
Wrong! Would you believe that about 5,000 homes are selling MONTHLY in the bay area right now. Does not sound like the market is totally dead to me.
One of the interesting stats is that most of these homes sales are going to one of two categories of people:
- Investors; or
- First Time Home Buyers.
Let’s look at the first time home buyers first. One of the things that has happened in the Bay area is the ability to use FHA financing for first time buyers. Previously, the price points made this impossible but today, the FHA limit goes all the way to $729,250. Personally I believe that is a bit ridiculous but that is besides the point. So, with FHA financing, the buyer can put little money down and get into a fantastic deal.
The price points have changed dramatically as well in the area. A couple of years ago, less than 10% of the homes in the area sold for under $300K…… Today, it is over 51%.
Investors are also finding good deals. A recent article in the San Francisco Chronicle described how a real estate agent turned a quick $77,600 profit by buying a house with cash and the reselling. While most investors are buying, then renting, then planning to sell in a few years, there is still a few flip type opportunities that exist.
This Is A Link To The Chronicle Article
Why Buy REO Properties?
March 18, 2009
The term REO means “real estate owned” by the lender and indicates the house or income producing property has been repossessed by the lender and already completed the legal foreclosure process. In most cases, the lender is the bank, which is why you hear the term “bank owned properties” or “Bank REO’s”.
The bank becomes the owner of the property after the foreclosure process or an individual if an agreement has reached during the proceedings..
Short Sales may be a great buying opportunity. The major complaint from people is the time involved to get it approved by the lender for the short sale price. The home is normally listed by a real estate agent for a value that they feel is right to bring buyers, and will be adjusted accordingly once the lender has finished a complete home valuation analysis to determine the actual sales price.
The majority of the time the lender approves a sales price below the current market value just to sell it quick. One needs to remember that prices in the first-time buyer range have lots of competition which could make it bidding war.
When a buyer buys a foreclosed property, they agree to take the property on its present condition and accepts all other conditions and agreements that goes with the property.
Since what is owed to the bank it is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property “reverts” to the bank. It becomes an REO, or “real estate owned” property.
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Who Is "REALLY" Making $ In Today's Real Estate Market?
Our 29,689 Members Tend To Agree...
It's Usually Not The GURUs
Have you ever noticed that every "Guru" real estate pitch sounds the same........
They once were poor, but now are rich working only 5 hours per week, and you can be rich too if you just buy their "can't fail system".
Or have you noticed that every property promote has a can't miss proposition, if you just buy TONIGHT.
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