About Me
- The Desert Real Estate Blog
- De gustibus non est disputandum - There's no excuse for good taste. Living Well Begins At Home. As the broker of choice for countless celebrity clients and Fortune 500 CEOs, I take pride in a level of service, experience, and discretion that is without peer in the communities of La Quinta, Rancho Mirage, Indian Wells and Palm Desert. Searching for a residence of uncommon distinction and grace? Share your wishes with me and reap the benefits of an insiders’ knowledge of the upscale desert communities. And if you are planning to place your home on the market, no one is more skilled at providing exposure and finding qualified buyers across the nation and the world. I specialize in luxury homes and fine golf properties within the Coachella Valley.
Wednesday, May 16, 2012
8 things to know about buying a home today
11:47 AM | 
Posted by
The Desert Real Estate Blog
Use mortgage preapproval to your advantage
The home-sale market is showing signs of life. More buyers are confident now than they were a year ago that now might be a good time to buy. Interest rates are near all-time lows and home prices in some areas are back to 2002-2003 levels.
Some analysts are finally suggesting that we may be headed for recovery. If you have a secure job, plan to stay put and feel this is the right time for you to buy a home, consider the following.
In most places in the country, home prices are still declining. It has only been recently that the market picked up and it's too soon to know if this will result in a sustainable increase in prices.
The recent home sales in areas around California's Silicon Valley defy the norm. Significant job growth in the area combined with a low inventory of good homes for sale has resulted in multiple offers with buyers bidding the price up sometimes hundreds of thousands of dollars over the asking price.
In other high-demand, low-inventory areas, you may find yourself bidding against other buyers, perhaps even more than once. This doesn't necessarily mean that the price will be bid up significantly over the asking price. This will vary from one listing to the next depending on property location, condition and price.
It's important to research the local community where you want to buy. Find out what homes are selling for, if multiple offers are common and if listings are selling for more than the asking price. This will help you make a realistic offer that might be accepted when you find a home you'd really like to buy. It helps to work with an experienced local real estate agent.
Some sellers in high-demand niche markets intentionally list their home at a low price hoping to stimulate multiple offers. If you see such a listing and there are a lot of buyers wanting to make offers, you will be better able to know how high your offer would need to be to win the contest if you have done your due diligence.
HOUSE HUNTING TIP: Whether you're anticipating competition or not, you should be preapproved for the mortgage you'll need to complete the purchase before you write an offer. In competition, this will make a big difference, particularly if everyone else who is offering is preapproved. It also lets you know what you can afford. And, it puts you in a good bargaining position with the seller.
Buyers aren't the only participants in the housing market that have heard the news that the market has improved. Some sellers are putting their homes on the market because they've been waiting for a better time to sell. This is good news for buyers looking in low-inventory markets.
You should expect that you will have to negotiate. Many of today's sellers are selling for less than they paid. Even though the market has improved a bit, sellers may be disappointed with the current market value of their home. Be prepared to negotiate, not just the initial price, but after inspections are completed if items come up that you hadn't anticipated.
Include realistic contingency time frames in your purchase contract for loan and appraisal approval if you're applying for a mortgage. The recent uptick in the market means that lenders are suddenly overwhelmed.
In mid-March, buyers in Oakland, Calif., who were seeking approval for a jumbo loan were told they could close a transaction in 21 days. Not only could they not close in 21 days, it took more than 21 days for loan approval due to lender backlog.
THE CLOSING: Underwriters could require that additional conditions be met before you can be approved. Act quickly to avoid further delay.
Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."
Sales & Building on the Upswing in the Desert
Home Sales & Prices In Several of the Desert Cities begin to Increase, while Inventory Continues To Shrink
Both sales and prices of desert homes and condos in several desert cities were on the rise again during the first quarter of 2012 compared to the same period of ‘11. Over $608 million of desert property was sold during the first quarter in the five most active desert cities listed below.
Indian Wells: Sales UP +21.05% / Average sales price +11.90% to $917,983
La Quinta: Sales UP +9.35% / Average sales price +3.28% to $588,105
Palm Desert: Sales UP +3.45% / Average sales price +1.93% to $455,488
Palm Springs: Sales UP+2.07% - Average sales price -1.93% to $428,130
Rancho Mirage: Sales DOWN -4.26% - Average sales price -7.96% to $578,496
Indio: Sales DOWN -9.46% - Average sales price +2.09% to $308,879
2012 1st. Quarter Sales Volume By Price Segment Versus those of 2011's 1st. Quarter
Homes sold from $200,000 to $399,999: +3.14%
$400,000 to $599,999: +1.92%
$600,000 to $799,999: -1.81%
$800,000 to $999,999: +4.35%
$1M to $1,499,999: +29.90%
$1.5M to $1,999,999: +9.10%
$2 Million and greater: +15.65%
Data Source: Desert Area MLS sales of homes and condos sold in the first quarter of 2012 compared to 2011 in the cities of Indian Wells, Rancho Mirage, Indio, La Quinta, Palm Desert and Palm Springs. Data extrapulated from numerous reliable sources.
Disclosure: Data is deemed to be accurate but cannot be guaranteed.
The Desert's Home & Condo Inventory Drops To 3.85 Month Supply - the Lowest in Several Years.
Seeing declining inventories, several optimistic local and national new-home developers, especially in La Quinta, have either broken ground or are considering purchasing land and lots and building new homes again. Builders such as Lennar with the Bridges at Jefferson, Sedona Homes at The Hideaway and RJT Homes with Cordoniz . In January alone, builders took out over 200 building permits in Riverside County, which is more than the entire last six months of 2011.
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