The local market has appreciated significantly over the past 18 months, and has done so with fewer total sales. But higher prices and mortgage rates are causing the market to pull back and create opportunity to buy better in 2013. Here are three quick tips to help you make sure get a great deal this year.
1) Ignore short-sales: Well not completely. But know that short-sales take a long time to complete which put you in unknown territory for where rates might be. Know that banks in today's market have become wise to the sub-market offers being put in by flippers wanting a deal. Banks are demanding closer-to-market prices for short-sales. While you wait for bank approval, rates may jump up and make that home more expensive.
2) Consider a Remodel: Closing escrow on a project home is not high on the list for many homebuyers. That is good, because in means less competition from other homebuyers and most likely a better price. Also, new conventional lending programs are allowing homebuyers to put just 5 to 10 percent down, avoid mortgage insurance and put the rest of the would be 20 percent down towards an interior remodel. Fixers are a great way to secure a better price and personalize the property to your taste. Even add sweat equity. Bonus!
3) Stay Patient: It appears the market appreciation is slowing for the moment. This is good and you should welcome the change. Take your time and consider your housing options. Decide on an area you want to live and get prequalified. Although prices have risen quickly, it is not expected for home prices to continue going up. Consider carefully the area and home you are buying, as a home purchase should be a long -term commitment. If you find yourself wanting to speculate for short-term profit, be careful.
Carlsbad market reaches equilibrium
1) Ignore short-sales: Well not completely. But know that short-sales take a long time to complete which put you in unknown territory for where rates might be. Know that banks in today's market have become wise to the sub-market offers being put in by flippers wanting a deal. Banks are demanding closer-to-market prices for short-sales. While you wait for bank approval, rates may jump up and make that home more expensive.
2) Consider a Remodel: Closing escrow on a project home is not high on the list for many homebuyers. That is good, because in means less competition from other homebuyers and most likely a better price. Also, new conventional lending programs are allowing homebuyers to put just 5 to 10 percent down, avoid mortgage insurance and put the rest of the would be 20 percent down towards an interior remodel. Fixers are a great way to secure a better price and personalize the property to your taste. Even add sweat equity. Bonus!
3) Stay Patient: It appears the market appreciation is slowing for the moment. This is good and you should welcome the change. Take your time and consider your housing options. Decide on an area you want to live and get prequalified. Although prices have risen quickly, it is not expected for home prices to continue going up. Consider carefully the area and home you are buying, as a home purchase should be a long -term commitment. If you find yourself wanting to speculate for short-term profit, be careful.
Carlsbad market reaches equilibrium