When a California homeowner has financial problems, they may find it difficult to make mortgage payments. In some cases, a cash-strapped homeowner may decide to sell their home as a way of getting out from under oppressive debt. This option could work; however, there are conditions under which it may not be possible.
California residential real estate can be valuable, and many people may look to get a great deal by purchasing a short-sale property. Of course, short sales are less prevalent than they were a decade ago. From 2008 to 2012, the peak years of the financial crisis, they were a relatively common option. However, there are still a number of homeowners who opt for a short sale as a way out. In these cases, the mortgage lender agrees to accept a payoff amount less than the full amount owed in exchange for a quick sale of the property to a financially stable buyer.
Prior to buying a home, it is generally a good idea to get tentative loan approval from a mortgage lender. This can help a person in California or elsewhere get a better idea of how much they qualify for. However, it is important to know how long the approval will be good for, and in most cases, an individual will have up to 90 days to obtain an actual loan.
Real estate investors in California and throughout the country could be willing to buy a home if they think doing so could be profitable. However, there are upsides and downsides to doing so. For instance, selling a home to an investor may avoid a foreclosure and the credit problems that can come with it. Of course, it is important to understand that the home will likely sell for less than market value.
Individuals in California and throughout the country who are looking to sell their homes may be able to receive cash offers. In some cases, the closing process is easier, and it may be less expensive to complete the transaction without the need for a real estate agent. However, there are some issues that a property owner should consider prior to accepting a cash offer from a prospective buyer.
When a California resident decides to sell a home to a friend or family member, they may be happy about the transaction. However, the choice can come with its own complications. Buying or selling a home is already a somewhat complex process that is often one of the biggest transactions in a person's life. As a result, a sale between friends or family can come with the complications that accompany a combination of business and private life. In the first place, there is no arms-length transaction with a close relative or best friend; both parties know a great deal about each other's lifestyles and financial situations.
California may rank as among the best places to live in the United States. However, according to an Owners.com report, Virginia Beach was ranked as the top location to call home. Homes there sell for an average of 3 percent less than their list prices while rent in the region has only increased by an average of $7 in the past year.
For most people in California and throughout the country, the process of buying a home starts months before the house search does. Ideally, a prospective buyer will get his or her finances in order and ready to be scrutinized by mortgage lenders. In addition to the mortgage payment, a buyer will need money for a down payment and other up-front costs due at closing. Individuals who are looking to buy a home may also need to improve their credit score.
Homebuyers in California have struggled with affordability for years, and real estate insiders do not expect 2019 to bring any relief. Mortgage interests rates, which had already increased throughout 2018, will continue their upward climb this year. Economists are saying that people shopping for homes will face higher borrowing costs.
The price that a buyer will pay for a home in California is partially dependent on local market conditions. However, there are some steps that a seller can take to get the most for a property. One important step is to create a reasonable list price based on what similar homes have been listed at or sold for. A real estate agent can do market research to determine what that price is for a given home.