Sunday, March 28, 2010

San Fernando Valley Homes Under $500,000

You've waited for the right moment to purchase your dream home.  Guess what?  The San Fernando Valley real estate market is HOT and homes priced under $500,000 are selling within days.  Multiple offers and over-bidding is the norm.  If you are an FHA home-buyer, you'll be competing with buyers with conventional loans and investors who are paying all cash.

Chances are, the seller is going to take a non-FHA loan if all else is equal.  An FHA loan has some drawbacks including the house has to pass their inspection and the home needs to get appraised. With all the over-bidding and offers, the chance of having the deal fall-apart for an appraisal that doesn't come through is high for an FHA home-buyer in the San Fernando Valley.

Some home-buyer thought by waiting after April 30, 2010, which is the deadline to have a deal signed by buyer and seller to get the $8,000 tax credit, the real estate market would tank.  Unfortunately for them, the Governer, Arnold Schwarzenegger, passed a $200,000,000 million dollar tax credit for first time buyers who purchase a new or an existing home (older home).  You can read more about it here:

I do believe that banks have too many non-performing assets that need to be sold asap.  This shadow inventory, which I believe is the end result of all the failed loan modification attempts, will add a lot of foreclosure inventory to the marketplace.  But with buyer demand strong, those homes would be sold quickly.

Also, what you read and hear can be very different when you actually start viewing homes and writing offers.  Call me for a free real estate consultation at my real estate office in Tarzana.

Richard Johnston, ReMax

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