Debunking the Myths About the Foreclosures Market
Category: Real Estate Trends
Published: Wednesday, February 11, 2009
The current downward spiral of home values started a little over a year ago, bringing Murrieta home prices down as low as 45% over December, 2007 rates. With that in mind, it should come as no surprise that market watchers and real estate pundits spend their time predicting when the market will turn, when the foreclosures will be gone and how much value will have been lost. Here are some of the common myths you're likely to hear when it comes to buying a foreclosure, bank home or short sale, followed by the real deal in Murrieta foreclosures and Temecula bank homes.
Myth #1 - The bottom hasn't hit yet so it's better to wait before you buy.
The truth is no one knows when the bottom has, is or will hit. If you can pinpoint the bottom that means prices are already on the rise and you may have missed your opportunity. Prices in Murrieta are off 33.4% from one year ago. In nearby Temecula, foreclosures have brought values down 29.9%. Menifee bank owned homes have sent values plummeting 28.1% in the beautiful Menifee area. How much lower are you looking for and how much longer are you willing to wait?
Myth #2 - The credit crisis means lenders only want 20% down.
Not so. Federally backed FHA loans require only 3.5% and for veterans, VA loans are still no money down. With Murrieta bank owned homes selling for approximately $250,000, that means you only need $8,750 down. That's a lot more doable than $50,000, isn't it?
Myth #3 - A house on the market a long time means the seller is desperate.
Don't assume a home that has been listed six months or more will be a fast sale at a bargain price. Instead being desperate, the homeowner could be quite stable financially and holding out for just the right price. While you might want to submit a lowball offer, you risk offending the seller whereas a reasonable offer might set the stage for a successful negotiation.
Myth #4 - Start with a ridiculously low offer, you just may hit pay dirt.
You might also get rejected flat out by an irritated seller. While banks want to clear their REO properties from inventory, they also know that there are a lot of interested buyers for the current supply of Murrieta bank homes and Temecula foreclosures. Find out what the comparables are and start there.
Myth #5 - Financing is impossible to get these days.
Do you have a mortgage now? How about a car loan? If so, start with those companies you already have an established relationship with. As loan as you have a reasonable credit score and a good history with your current lenders, you stand a good chance of getting financed through them. Besides, they want to keep the customer so many banks will even negotiate closing costs for long term customers.
Don't let the rumors and nagging worries stop you from shopping for your next home today. The foreclosure specialists at Oak Tree Realty Group Murrieta know Murrieta, Temecula and Menifee foreclosures like no one else and can set up a personal showing today. Contact them at 1-951-973-7177.
The $8,000 first time homebuyer’s credit is set to expire in November and buyers are busy finding the best deals on Murrieta foreclosures and Temecula bank homes. The team at Oak Tree Realty Group Murrieta points to possible neighborhoods for great deals on affordable Murrieta bank homes.
Murrieta foreclosures led Southwest Riverside County home sales during the month of July according to market analyst MDA DataQuick. Nearly 1,000 homes changed hands last month and the experts at Oak Tree Realty Group Murrieta put the numbers in perspective.
Buyers of Temecula foreclosures may have less competition from first time homebuyers in the coming months, thanks to a plan by the City of Temecula to complete 110 half-finished condominiums and turn them into affordable housing apartments for rent. The team at Oak Tree Realty Group Murrieta offers insight into the plan.
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