Is it a great time to buy? Yes. Interest rates are at historic lows, Congress just passed an $8000 tax credit for first time buyers, and prices just keep getting better and better. There are plenty of folks who are taking advantage of this opportunity. As such, jumping into the current market for foreclosure properties in Santa Maria - Orcutt CA can be a rude awakening for potential buyers who must compete for homes in this “buyer’s market.” REOs comprise the majority of sold properties in the Santa Maria and Orcutt housing market. The market is clogged full of short sale listings which take a good deal of time to gain lender approval and in the meantime languish. Thus, seasoned buyers are focused on the bank owned homes and bidding wars are common for the most desirable listings.

What can cause a bidding war to erupt? Well given the condition of most foreclosures, something as simple as new carpet and a fresh coat of paint can cause buyers to line up. But usually a low asking price tips it off. Also, bidding wars tend to erupt over newer homes and/or homes in well-established, desirable neighborhoods. I recently bid on a newer home (where the paint and flooring were in excellent condition) that was priced about 10% below the last resale in the same development and by the time 4-5 days had elapsed there were 15 offers in total. In addition, if the asking price is very low, the chance that the listing will attract an all-cash buyer or a big down payment buyer increases.

When there are so many offers the bank does not counter to individual buyers, indeed, sometimes they merely pick out what they deem to be the best buyer and counter only to that offer. However, if they do counter, it is usually a “highest & best” counter offer. Buyers are then left in the precarious position of bidding in the dark, and if they already are the highest bidder they may be bidding against themselves. Sometimes, the banks are not looking for the highest offer, but for the best terms, and in that sense some buyers can’t compete. How can you make your offer more competitive?
1) Use conventional financing rather than FHA or VA (however this typically requires at least 10% down in this market for financing); 2) increase your good faith deposit amount; 3) pay your own closing costs.

With these and other tips, I can help you write the most competitive offer to succeed in a bank owned bidding war. If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

 

River Oaks is a newer subdivision of homes located in northeast Santa Maria. Building began around 2001 and there are at least 5 different floor plans. The subdivision is home to Taylor Elementary School which lies at the center of the development, a man made lake, and direct access to riverbed adjacent biking and walking trails. There are two one story plans, both are smaller 3/2 homes at about 1400 sq.ft. and 1600 sq.ft.; the two story plans begin at about 1900 sq.ft. and go up to at least 2700 sq. ft., depending on the options the original owner selected. Some of the 2 story models have 3 car garages, one plan has a downstairs master bedroom, and at least one of the other plans has a downstairs guest bedroom option. Looking back at the 3 month period from November 2008 - January 2009, 17 homes sold in the River Oaks subdivision, with an average selling price of about $284,000, and an average list price of about $294,000.

 

 

Sold listings were on the market an average of 77 days, were about 1900 sq.ft., and sold for about $155 per square foot. 12 of the 17 sold homes were REOs, 3 were closed short sales, and only two were regular sales. 88% of the sold activity in this neghborhood was forelcosure related; so, like many other developments that were built during the housing boom River Oaks is now overloaded with foreclosures during the housing bust. The smaller one story models sold for between $250,000 - $268,900; the larger two story models sold for between $284,000 - $338,000. Currently in River Oaks, there are 14 homes that are active, contingent or pending. 5 active listings, 1 contingent listing, and 8 pending listings. 7 are REOs (bank owned) and 7 are short sales — so all the current listings are either foreclosures or pre-foreclosures. Current listings have been on the market an average of 116 days, and have an average asking price of $293,000.

 

 

If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: iLoveSantaMaria.com, SantaMariaRealEstateSearch.com, & BuySantaMariaForeclosures.com (map based search), If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at SellMySantaMariaHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

 

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market