The Rules Have Changed for Home Buyers

Buyers looking for homes in the Danville, San Ramon, 680 Corridor area may want to note what Richard Green, PhD (Director of the Lusk Center for Real Estate) has to say – Anyone who says they are certain about what is going to happen in 2009 is lying.

Green’s point is that even prior to all of the recent economic havoc, the only certainty is that all of the rules have changed. Subprime and 100% loan products have disappeared and bankers are raising the lending standards daily. Entire lending channels have dried up and vanished.

What’s the impact on Danville & San Ramon home buyers?

There are plenty of homes to buy and a lot of great deals out there. The big question for buyers is financing. A thirty-year fixed mortgage with a decent down payment is the superior product in the mortgage business.

Foreclosure sales in California are accounting for up to 50% of all homes sold in certain areas. In Las Vegas, that figure is as high as 75% for some real estate brokers.

Top 3 Tips for Home Buyers in Today’s Market

1. Get Preapproved for a Loan – this is always the number one bargaining chip for a buyer.
2. Know the Market – Don’t make the mistake of thinking that home all owners are desperate.
3. Learn What Constitutes a Good Offer – Knowing how to make a strong offer that is good for you and the buyer will keep you from wasting your time and losing the home you hope to buy.
4. Be Patient – Negotiating for the best deal can take some time – if you are involved in a short sale or a bid on a bank owned property, be prepared to discover new depths to your patience.
5. Work with an Experienced Agent – This is no time to rely on a friend, niece, or uncle that is just trying to survive the current crisis. The real professionals aren’t trying to survive, they are thriving in this current market. 

With the prospect of stability returning to the financial markets, the next six months could be one of the best “Let’s Make a Deal” time periods ever seen in Danville and San Ramon. It will take several months for the government to put all the pieces of the rescue plan into play. Foreclosures will continue to come on to the market and home owners still need to sell.

Watch the trends closely – FREE Reports Here.