While not record breaking, this is a sight for sore… Buyers. 🙂
“Sight for Sore Eyes”, was the logical choice – but most Real Estate buyers in the world are banging their heads against the wall when it comes to getting their offer accepted on the real estate for sale.
The reason is that over 70% of buyers are utilizing the FHA loan. When the sellers see that someone else has written an offer that is conventional in nature, 20% conventional, that offer appears much stronger in the sellers eyes. Not because it can get closed easier, but because the appraisal is not as critical.
FHA has certain standards, like VA, that protect the interests of the Buyer. So, if you have a property that is missing carpet, has holes in the walls, needs paint and needs appliances to be replaced, FHA and VA will mandate the seller pony up to fix those items.
When the seller has several different offers to choose from – all net-ing them the same amount of money – they are going to choose the offer that requires less money to be brought into the deal, from the sellers pocket, when dealing with FHA and VA’s appraisal standards.
Therefore, in today’s Santa Clarita real estate market, where we have a large amount of buyers and where true “saleable properties” are at a minimum, Sellers are going to give more creedence to the Conventional Offers and even more-so to Cash.
Frustrated, don’t be. Time will fix everything. During the past 24 hours we have had 18 new listings hit the Santa Clarita real estate market for sale. It has been several weeks since that amount of activity, in the form of new listings, has occurred in the Santa Clarita Valley.
This could be the Kicking off point where we flip from being a Sellers Market to a Buyers Market – Stay Tuned and Subscribe to our Updates, so you can stay in the “know” when it comes to Santa Clarita Real Estate!