If you clicked on this video, you’re clearly interested in pocket listings, how to find them, what they are, and what it means to you in the East Bay real estate market. And that’s what I want to talk to you about today.
Anyone who is looking to buy a home in the Bay Area will benefit from this content.
Even though everybody said it’s impossible to get your offer accepted, you still did. You succeeded. You won—congratulations! The contract is now signed and ratified, and your earnest money is in. Everything’s all good… until you get that appraisal number. It turns out you’re one of those people who got an appraisal lower than the purchase price. Now, that’s a problem for a lot of reasons.
Today, we’re going to talk about something a little different than what we usually talk about—the distinction between market price and market value. I wanted to do this as sort of a market update because I think it’s a really important psychology that you need to understand if you’re going to enter the real estate market as a buyer, seller, investor, or even a renter. Right now in our real estate market, these two things are in a real big conflict, and it seems like one is a little bit out relative to the other.
A Zombie Foreclosure, other than just being a really fun name, is an opportunity for you to get a killer deal in this market. No zombie pun intended! It is another iteration of foreclosure that you should be aware of because it’s not going to show up in the traditional way like we talked about previously with foreclosures versus short sales.
“A housing bubble is started by excessive demand, then it leads to inadequate supply, and then exuberant spending really pushes and inflates the housing bubble further.” With all these bidding wars in our market, everyone’s been wondering when is the bubble going to pop? Unfortunately, I don’t have the answer to that. But what I do have is some evidence and some anecdotes to share with you today—more specifically, about exuberant spending—that will give us a better view of what’s really happening with the health, or lack thereof, of our market.
Short Sales versus Foreclosures. This is a topic that I’ve done a few videos on relative to the foreclosure side of things. Now, I’ve been seeing a lot of people ask about them again, especially since it’s such a competitive market. They probably still remember how it is back in the day when short sales and foreclosures were really good deals. Back then, you might have to do some work, but you can definitely get those houses for a lot cheaper. Now that some of the laws have recently changed, let’s talk about short sales and foreclosures again, how they differ, and why that matters.
We’ve been talking about contingencies for the last couple of videos. Today, let’s talk about the third one and arguably the most critical one if you’re applying for a loan—the loan contingency.
I’ve been seeing this conversation pop up on Reddit, in the comments section on YouTube, in Instagram, all over the place, and I think it’s really important to understand, especially if you’re going to jump into this really hot market. The financing or the loan contingency is a very important piece, especially with some of the volatility we’re experiencing right now in the mortgage world.
You’ve submitted your offer, and you just received a counter from the seller, and it says that they want you to remove your appraisal contingency—should you? Today, let’s talk about contingencies, specifically the appraisal contingency, and how to responsibly remove this contingency to make a competitive offer.