What is with the Market? Houses are selling in one day! (Sacramento: credit, loan)

[charsacutter]

Diane,
I am with you. I have very few lenders I recommend also. I have been in this business for about 30 years now. I feel who ever I recommend is a direct reflection on my personal reputation. Not one of the buyers I have put into a home is losing it due to a bad loan that I or a lender I work with has recommended. Like all business there are good, great and unfortunately bad in all aspects of business not just Real Estate. I am also surprised that someone would knock Realtors when they are a component of their business.
As far as the market in Yolo and Solano County I am finding that there are multiple offers on most homes that are priced 300,00 and under if they are not major fixers.
There are several very good loan programs available for buyers. Fixed interest rates, down payment assistance programs, FHA 97% loan to value, even 100% percent conventional financing. Unfortunately, there are buyers that bought into the negative amortization loans thinking they could make big profits on there homes in a year. There are also those homeowners that had no idea what they were getting into. They just were buying an initial payment not realizing how much the payment would go up. I tell all my clients that purchasing a home in most cases is a long term investment. It gives you the security of owning your own home instead of paying rent My personally belief is that you need to stay in your home at least 5 years unless you have the experience and knowledge that goes with flipping homes for a profit.
I am not trying to debate the market. I work in it every day and this is just my take on it.

[volleyballer]

Well, I found out that the house that sold in one day was another Realtor that grabbed it before anyone else could even look or submit an offer. I just want a fighting chance. Please let our American Dream come true, and get your money-hungry hands off of these houses! I'll love and appreciate it much more than someone who's just going to flip it for a "profit" or rent it out and let the neighborhood suffer. Man, I'm getting tired of this.

My Realtor just told me that her partner called another Realtor for his client asking about a house. That listing Realtor said that it's already off the market. Come to find out, that listing Realtor took the house. Hey, he doesn't have to compete when he can just do his own offering and leave everyone else hanging. Do I have to become a Realtor now just to get a house? My goodness, when will this madness end? Argh!

[DyaneRiemer]

Volleyballer,

I understand your frustration! When you want to buy a home, you want to buy a home, and it totally stinks when you keep getting beat out, especially with unfair competition! I've come across what you are talking about, and it frustrates me, too! Perhaps you could play the same game... have you asked your Realtor if there are any REO agents in their office? If there are, perhaps your Realtor could "sell" you to the agent(s) (it sounds like you are certainly qualified!) and then check back with them daily to see what listings they have coming up which might work for you. Not only would your offer get the REO agent's attention because he already "knows" you, but your Realtor's daily visits to his/her office would show how serious of a buyer you are! This certainly wouldn't be fool-proof, as other offers may come in which beat yours, but I think it could help. Hang in there, you ARE going to finally get into contract!!!

[gypsy77]

I have another question on this subject...are investors also interested in buying up smaller, older houses in the foothills (Auburn) on property? Or are they most interested in investing in suburb houses because they will be more easily rented/sold in the future? I am looking to buy also, but we have our eye more on tiny shacks on two acres in the foothills. I was just wondering if I might have to deal with the investor competition also. And I know a girl who is trying to buy her first home in Roseville and almost every single one she's interested in has other offers in before hers. She is having a very hard time. I wish the investors would go away and give us (long time locals) an opportunity to buy instead of renting for the rest of our lives. I am 31 and ready to buy, it really sucks to have to compete with rich investors from L.A. and S.F. that are throwing down $50k or paying for the house in full. In 5 years, these same houses are going to be flipped and sold for so much more...or....we'll all have renter tenants living in every other house. Something has got to give, this is getting ridiculous. I will try my luck at making offers on small, shack houses on acreage in and around Auburn/Cool/Loomis. Wish me luck. I'm sure I'll need it.

[volleyballer]

Originally Posted by gypsy77

I have another question on this subject...are investors also interested in buying up smaller, older houses in the foothills (Auburn) on property? Or are they most interested in investing in suburb houses because they will be more easily rented/sold in the future? I am looking to buy also, but we have our eye more on tiny shacks on two acres in the foothills. I was just wondering if I might have to deal with the investor competition also. And I know a girl who is trying to buy her first home in Roseville and almost every single one she's interested in has other offers in before hers. She is having a very hard time. I wish the investors would go away and give us (long time locals) an opportunity to buy instead of renting for the rest of our lives. I am 31 and ready to buy, it really sucks to have to compete with rich investors from L.A. and S.F. that are throwing down $50k or paying for the house in full. In 5 years, these same houses are going to be flipped and sold for so much more...or....we'll all have renter tenants living in every other house. Something has got to give, this is getting ridiculous. I will try my luck at making offers on small, shack houses on acreage in and around Auburn/Cool/Loomis. Wish me luck. I'm sure I'll need it.

I'm looking in Roseville, and that's exactly what I'm experiencing. And I'm frustrated to no end with it. By the way, 50K is not even 20% on most houses. I think the investors really have 100% cash that they're throwing at the banks. I just wish the banks would grow a friggin' heart, and give us American Dream-seekers a fighting chance.

[Mika>Kimi]

Originally Posted by volleyballer

I just wish the banks would grow a friggin' heart

This, as reported by the A.P., is actually predicted to happen somehwere around 3-6 weeks after hell freezes over.

[gypsy77]

I

'm looking in Roseville, and that's exactly what I'm experiencing. And I'm frustrated to no end with it. By the way, 50K is not even 20% on most houses. I think the investors really have 100% cash that they're throwing at the banks. I just wish the banks would grow a friggin' heart, and give us American Dream-seekers a fighting chance.

I think it's ridiculous that working middle class familes are being pushed aside to make room for rich out of town "investors." What is going to happen when the housing market goes back up, and now all these houses are owned by people who don't live here? Will this whole Sacramento area be full of houses for sale and rent? Yes. And is the cost of those houses going to be through the roof? Yes. This situation is just going to create another problem for the future. But I guess realtors and investors don't care about the problem being created for the future of middle class Sacramento families. Seems like they just have dollar signs in their eyes right now. Well that's too bad. I sure hope in 10 years, that I don't still live in a rental house, surrounded by other rental houses. I hope SOME people will be real homeowners. If you work hard all your life, I don't see why they make it so difficult to buy a house. I've been reading about how they are trying to help people who are about to go through a foreclosure. Instead of helping people who overspent on a too big house, why not give other people a chance now? I'd be happy to take over payments for someone who racked up all their credit cards and is now broke.

[MOviaCA]

I been keeping an eye out on Lake Tahoe properties. They dont want to budge much either price wise. Even down the hill things arent moving that much.

[DyaneRiemer]

Originally Posted by gypsy77

I

I think it's ridiculous that working middle class familes are being pushed aside to make room for rich out of town "investors." What is going to happen when the housing market goes back up, and now all these houses are owned by people who don't live here? Will this whole Sacramento area be full of houses for sale and rent? Yes. And is the cost of those houses going to be through the roof? Yes. This situation is just going to create another problem for the future. But I guess realtors and investors don't care about the problem being created for the future of middle class Sacramento families. Seems like they just have dollar signs in their eyes right now. Well that's too bad. I sure hope in 10 years, that I don't still live in a rental house, surrounded by other rental houses. I hope SOME people will be real homeowners. If you work hard all your life, I don't see why they make it so difficult to buy a house. I've been reading about how they are trying to help people who are about to go through a foreclosure. Instead of helping people who overspent on a too big house, why not give other people a chance now? I'd be happy to take over payments for someone who racked up all their credit cards and is now broke.

Gypsy,

Trust me when I tell you that Realtors don't make any more money when they represent an investor than when they represent Mr. and Mrs. America. The commission is what the commission is. Yes, some Realtors are buying properties, and some investors are buying properties. However, only 30% of the buyers are investors, according to the big REO agents that work out of my office, which means that the other 70% are people just like you. The problem is that there has been so much pent-up demand for homes because everyone was sitting on the fence for so long either because they thought prices were going to drop, or because prices hadn't moved into their affordability range yet. Now prices have come down and people are coming out of the woodwork to buy, and unfortunately, only one buyer out of the many who are bidding, can get the home.

Truly, with only 30% of the buyers being investors, the future of Sacramento is not as bleak as your post paints, so don't despair! There really is hope for you, it's just going to take several tries. That is simply how the market is working right now. Keep trying ... you will eventually get one! And when you do, it will all be worth it to you!



DR

[NHman]

Originally Posted by clongirl

I don't think we are anywhere near the bottom. People can't get loans, lending standards are tightening, the economy is in recession, inflation is happening, the dollar is in shambles, layoffs are happening in many companies, and all of those adjustable loans are still resetting. This is the biggest housing bubble in history and these things historically have taken many years to "normalize". This is no "bottom". Prices won't be going up anytime soon. To find out if you are getting a good deal on a house, take 1998 prices and add about 4% a year until now. If that price is about where it should be, then go for it. If not, then wait patiently or pay too much. Prices have to keep pace with incomes. You should be paying 3, maybe 4 (stretching) times your yearly income. If you don't have at least 20% down and immaculate credit and enough money for several months mortgage payments, then you probably won't even get a loan.

OMG! I just bought my home back in sept before they started the new loan procedures. I ran into my broker a few weeks ago and she told me that there was now way I would have been approved for a loan now with my "fair" credit history and low, low low (About 5%) down payment.
Lucky me!