According to recent research from DataQuick, the median price on a Southern California home rose 2% from June to July hitting $306,000. That’s the highest median price recorded since September of 2008.
Meanwhile, the number of homes sold in the $200,000-to-$400,000 range rose 13.4% from July 2011 levels.
Working with clients that are trying to purchase a home in today’s market has become, least to say, nerve-wracking. The reason for this is that the inventory of homes on the market have lowered considerably.
Because of this, there are multiple bids on homes. I have had several realtors tell me that they are seeing 25 or more offers within a couple of days on a single property. In order to get your offer accepted you will need to be the best offer with a solid home loan approval.
There are a couple of ways to prepare yourself before going out and submitting offers on a home.
- Get a team that will work with you best. This means that you will want to work with an experienced Realtor and loan officer. This can be accomplished by working with those that are experienced in their field. Ask for referrals from friends and family.
- Get pre-approved for a home loan before going out with your Realtor. The reason for this is that you will be submitting offers on homes right away and Pre-approval letters are required to be submitted with an offer.
- Be sure that you know the details of your loan. Knowing what payments will be and the maximum purchase price will be very important when deciding which home you want. You will also need to know how much money is required to close your loan.
Once you are ready to begin looking for a home you need to be determined and focused. Don’t get frustrated and quit looking.
This is a very competitive market and you will need to stay diligent and realistic in regards to finding your American Dream.