Blue Pear Blog

 I was the listing agent on a property in Redwood Valley. The buyer was selling a house in Willits that was in escrow and all was going well. At the last moment, the lender for the buyer on the Willits property decided to check with the IRS and look at their tax return. It didn’t match the one they submitted! The buyer made some excuse about giving the lender a “working copy” by mistake. That didn’t fly. The lender cancelled the loan process and the two sales were dead.

I had heard lenders may do this but I had never experienced it personally. My seller was devistated, of course. It all did have a happy ending for my seller, however. She ended up with a new offer that was better than what she lost.

 This added to my collection of unlikely but possible things that can go wrong in any escrow. When a seller asks me if they should start packing, my mind goes back to many of these examples and hesitates before answering.

John Bogner

It’s been interesting experiencing the many changes in the real estate business in the 29 years I have been practicing this profession. Part of the evolution I find fascinating is the whole home inspection process.

When I first got my license in ’77, most buyers got only a pest control inspection. We called them “termite” inspections then. Sellers seldom had inspections done prior to putting the house one the market. Buyers traditionally paid for the inspection and expected the seller to take care of the work recommended. That was considered the sellers “responsibility” and most lenders required a “clearance” anyway. Unless something else was obviously wrong and easily visible, buyers took their chances and hoped they weren’t buying “hidden problems”.

The real estate purchase process has changed and so has the inspection process. Buyers began to demand more information about what they were buying. Simply finding out if there was dry rot or termites wasn’t enough. Finding these answers has created a new industry…and a whole new set of problems.

John Bogner

I hear people say they won’t buy in this market because prices will fall further. Yes, I agree with the second part. Prices will likely drop even more in the next year or so. But ruling out buying real estate altogether is a mistake.

Before you choose to wait until the market “bottoms out”, stop and think a minute. First, the reason you are buying and, second, what you are buying may make buying now a good idea.

Are you considering buying closer to your work? Need more bedrooms for a growing family? Sometimes waiting until the “right market” can put life “on hold”. You may miss out on the enjoyment of that next home while waiting for the “right time”. Purchase price isn’t the only thing to consider when purchasing real estate, especially your home. Waiting to enjoy a home in the right location or with the space your family needs may not be the best choice overall.

What you buy may be another reason to consider buying now. There are some sellers out there who are very serious about selling NOW! Their personal circumstances are such that they can’t wait until a “better market”. Some of these sellers are willing to discount the price way below market, especially for a quick sale. If you are considering a move up (or down), this may be an opportunity to buy at a great price. If you are in a position to keep your previous property and sell it later, you may be able to “buy low…sell high” as the saying goes.

Bank owned properties (REO’s as they are called in the industry) can offer a great opportunity too. Many banks are overloaded with foreclosed houses and time is money to them. These properties can sometimes be purchased at below-market prices.

Interest rates may be another reason to consider making a move now. Rates are low now and no one knows what they will be when the market eventually recovers. If you have good to excellent credit, you can get a wonderful fixed rate loan and enjoy that new home for years to come.

 Consider taking advantage of the huge inventory, low interest rates and some very motivated sellers. This may be the time for you to make your move