Getting depressed...mortgage=no home, cash only wins (San Jose, Oakland: sale, real estate market) - California (CA) - City-Data Forum

jb1974 · 05-24-2012, 07:37 PM

We have just had our 4th home offer in 6 weeks not get selected.
We always offer about 10% above asking, but because we will have a mortgage, a cash buyer always wins. We even put down zero contingencies as we have already sold our home here...and now will have no home to go to.
We are going to have to rent....but I have a sad feeling that we will never get a home. And then this move from Canada to San Jose will have all been for nothing if we cannot get a home thats our own (need a fenced yard as our one son is autistic). To top it all off, I will be 35 weeks pregnant with my third child when we do move down there.
We didnt go renting a house route just in case we could get an offer that was accepted...now I am thinking we should have just gone this route instead of an apartment.
I am just so depressed. I wish my husband never took this job....whats the point of a high paycheque if your dream is to have a house for your kids to grow up in and you cannot get that?
Hs anyone lately been able to purchase a home with a mortgage? Or is everyone walking around with 600-700k in their bank accounts in this town

Sorry for the vent....just had to get it out there.

TheGreatCurve · 05-25-2012, 02:14 AM

Quote:

Originally Posted by jb1974

Or is everyone walking around with 600-700k in their bank accounts in this town

A lot of people in the Bay Area have a lot more than that. Just look at Facebook employees. After its IPO last week, many employees will have 10-20 times that in cash. This is the land of stock options and instant millionaires.

Sorry to hear about your frustration in trying to buy a house here but it's not at all unusual. The real estate market is super hot right now with some houses in prime areas getting upwards of 100 offers. I know it's crazy. In this current competitive market, cash is always going to be king. Be patient and you may eventually find something. But there's nothing wrong with renting, either. It's actually cheaper to rent than to buy in the Bay Area in most cases. Heck, I've been here for 14 years and I'm still renting.

RebekahOwen · 05-25-2012, 06:04 AM

I just got a first time buyer into a colleagues listing - she knew we'd make it happen. Also approached a long term landlord with a first timer and got the house.

Also, the market slows right after kids hit school -so another opportunity is coming.

When you look back on this time it will all make sense. For now, trust the path before you

gone down south · 05-25-2012, 07:08 AM

Buying a house should be a financial decision, not an emotional one.
There's no shame in renting if it makes more sense financially, which it often does in the Bay Area.

Ultrarunner · 05-25-2012, 08:03 AM

It is the age old dilemma of Location, Location, Location.

Six years ago the story was the same for just about anywhere in the Bay Area...

Three years ago the story changed 180 and people were walking away.

Today... the area you are looking at is has crazy demand...

Demand is what keeps the market tight.

Not all the Bay Area is the same... the farther out you go the less competition.

I drive by homes that have been sale in the East Bay for months... I live in Oakland...

RCLL · 05-25-2012, 08:25 AM

I bought a home a couple of years ago around the time the economy hit rock bottom. Even during that time there was multiple offers. I imagine now that the economy has picked up this will be more the case, with even more multiple offers. This is not unsual. The beauty of buying at the time when I did, was SELECTION. Had it not been for the economy taking a dip, and folks scrambling, wondering if the sky was falling, there is no way that I wouldve landed this home. I knew that the probablity was high that the home would go down in value given the state of the economy, but it didnt matter to me. What was important, was the selection available. It did go down in value, but has since gone up and has stablized. My thinking was always long term for this property. I have no regrets and would do this again in a heartbeat.

Nothing wrong with renting, once your here and are familiar with all areas, opportunities do crop up, just be patient and expect multiple offers. With a high paycheck, youre in good position, it will just be a matter of time.

jbunniii · 05-25-2012, 10:50 AM

Part of the problem is that there doesn't seem to be much inventory for sale at the moment, even though this is supposed to be the busy season.

If possible, I suggest trying to buy during the slow season (winter). I had been planning to buy this summer but started looking in January just to see what the market looked like. I found a house I liked and made an offer on a house in February, and had no competing bids to deal with. Same price range as yours, in San Jose. Seller agreed to 5% less than asking price, and they paid most of the closing costs. I was not a cash buyer. I used a standard 30-year fixed conforming mortgage.

jb1974 · 05-25-2012, 11:12 AM

Thanks for the comments...I guess we will have to be more patient.
We hear back this afternoon if we will lose house #5 or not. Very stressful!
I hope that things will improve later on this year. In addition, because we have zero US credit, after 6 months of living here our budget can increase because we will have credit which might lead to more options maybe? In the meantime we will just keep building the nest egg

mysticaltyger · 05-25-2012, 02:51 PM

Quote:

Originally Posted by jb1974

We have just had our 4th home offer in 6 weeks not get selected.
We always offer about 10% above asking, but because we will have a mortgage, a cash buyer always wins. We even put down zero contingencies as we have already sold our home here...and now will have no home to go to.
We are going to have to rent....but I have a sad feeling that we will never get a home. And then this move from Canada to San Jose will have all been for nothing if we cannot get a home thats our own (need a fenced yard as our one son is autistic). To top it all off, I will be 35 weeks pregnant with my third child when we do move down there.
We didnt go renting a house route just in case we could get an offer that was accepted...now I am thinking we should have just gone this route instead of an apartment.
I am just so depressed. I wish my husband never took this job....whats the point of a high paycheque if your dream is to have a house for your kids to grow up in and you cannot get that?
Hs anyone lately been able to purchase a home with a mortgage? Or is everyone walking around with 600-700k in their bank accounts in this town

Sorry for the vent....just had to get it out there.

I share in your frustration. A lot of people who want to raise kids either move or simply don't live in this area for all the reasons you've mentioned. The real estate market here is brutal and unforgiving whether you're a renter or a home buyer.

Housing supply here is always short of demand, partly because of all the red tape required in building new housing.

StandingRoomOnly · 05-25-2012, 03:13 PM

I personally think it is better to come here and rent while looking for a house to buy... buying into a neighborhood you aren't *really* (or even somewhat) familiar with may be a gamble...especially in many parts of San Jose. And as many said, yes, some people do have a lot saved up ready to pounce on a house with all cash (or so the rumor has been among a lot of people I talk to), but it certainly isn't the majority of buyers (or so I'd like to believe!

).

Good luck with your move and don't be too desperate to buy before you come, you may appreciate taking a bit of time before settling into a house you are solely responsible for (maintenance, remodeling, etc etc) and making sure you are able to pick the exact areas in San Jose (or outskirts) where you and your family feel most comfortable. It takes a bit of time to get a *feel* for a place.