They -- that ubiquitous they -- say that California is the land of fruit and nuts. You hear crap like that all the time when you live in California. But let me tell you, a new Field Poll released Tuesday found that 91% of voters in California say our state economy totally sucks. I don't see any fruit or nuts in that bowl of cereal. Sounds like people know what's going on. Then you've got your 72% who say the economy will stay about the same or change, leaving 26% who hope it will improve -- and 2% who don't know which end is up.
Does this crappy economy mean you shouldn't buy a home? Depends. Depends on how secure your job is, I suppose. However, even without a job, you still have to live somewhere. When you look at prices today, in many Sacramento neighborhoods it makes more sense to buy than to rent. That's because your total PITI is most likely less than a rental payment. It's why investors are mad with desire to buy that home instead of you. Because they want to rent it out and pocket the cash flow.
Will our economy stay this way forever? Are we doomed? It will eventually change. It might even happen in your lifetime. The only thing constant about our economy is change. As a Sacramento short sale agent, I've got job security for the next 5 to 7 years, I figure. Short sales, I predict, will be around for a while. I've been doing short sales for the past 6 years, and I don't think I'm at the mid-point yet. There are just too many underwater homes in Sacramento.
If you're trying to buy a short sale in Sacramento and don't know what you can do to get the edge, here's my advice for you. Be that buyer who will wait for short sale approval and is committed to the transaction. Don't be a flake. Hire an experienced short sale buyer's agent. And don't be like an investor.
We received 2 offers yesterday for a Sacramento short sale. Offer A was a second offer from an investor. Her agent had submitted a previous offer but made so many mistakes and errors we were forced to ask for a rewrite. When the agent resubmitted the offer, the investor had changed the offer from all-cash to an offer with financing. That was OK. But she also lowered the price and offered less, which made little sense. I could see the other way around.
Offer B was from owner occupants. Or at least that was their story and they were sticking to it. They said they loved the home. They were willing to wait 3 months. They offered list price. So, you've gotta say to yourself, what will happen after the home inspection if you pick offer #A? Because Offer #A is from a person who thinks she can negotiate. A person who makes offers that are not based on common sense. There are no bank repairs on a short sale. Do you really want to deal with Offer A down the road?
The first-time home buyer got this home. Offer B.
Certified HAFA Specialist
Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying expert for About.com, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area with an emphasis on Elk Grove. Call Elizabeth Weintraub at 916.233.6759. Put 40 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. BRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.