Howard Steele is a mortgage consultant with Plaza Loans
In Campbell California. Howard has the unique perspective of having sold real estate as a Realtor as well as arranging financing for his clients. In these conversation with Silicon Valley Realtors I have relationships with, I encourage their opinion on market conditions for the benefit of the reader. So here is how Howard see’s it:
As a mortgage consultant the questions that I am often asked is “how are you doing in the real estate and mortgage market?”
Actually there are a surprisingly strong number of qualified buyers who are actively searching for that perfect first or second home. Yet, since the majority of the homes for sale are either “short sales” or bank owned properties known as REO’s (Real Estate Owned) there are some large obstacles in the path to home ownership.
To buy a home as a short sales one is enrolled in a long process of waiting for a bank to agree to take less money than what is owned on the first loan or even worse, the second currently on that property. Since banks work at their own pace and their loss mitigation departments are definitely overworked, timing translates into 3 to 6 months of hoping that this bank will agree to the sale and allow the buyer through. Most buyers and agents do not have patience for this.
Bank owned properties are no easier since banks know that if they market the house for considerably less than actual value they can create a bidding war. Any family making an offer on those homes needs to be prepared to make an offer substantially over the list price just as they did in the heyday of real estate several years ago, just to have a chance to buy the home.
Transaction are taking longer, the buyers are more frustrated and more research and negotiations are required to assemble successful transactions.
Thanks Howard for your insights and I guess if we are to draw conclusions from Howard’s subtle coaching it would be, build a relationship with a qualified and aware professional you trust then be patient!
