NEVADA COUNTY HOUSE HUNTING TIP

As I have reported prior, the inventory of available homes currently on the market in Nevada County is in decline, which is causing many homes to receive multiple offers. Whether you're anticipating competition when you bid or not, you should be pre-approved for a mortgage before you write an offer. When in competition, being pre-approved will make a big difference, particularly if everyone else who is offering is pre-approved as well. 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 today's 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 who are looking in the low-inventory markets such as Nevada County. In the past seven days 75 new properties have been added to the local MLS.

(If you would like to be added to the automatic MLS email system, which gives you unlimited access to the MLS, click here and sign up.)

You should expect 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 as well, especially if items come up you hadn't anticipated. Many Properties in and around Nevada County have had work done without permits, so look closely.

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 with paperwork.

In mid-April, buyers in Nevada County, who were seeking approval for a 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. You will need time.

In conclusion, If you know you will be looking at homes for purchase this summer get pre-approved for a loan, be prepared to negotiate, check all permits and leave ample time to close the transaction.

Scott Hopper - Realtor, 530.477.2277

STABLE RECOVERY IN PLACE FOR NEVADA COUNTY

Over the course of the past six years home ownership has fallen by one million households per year where as historical data shows there should have been one million new homeowners added. Since the bubble burst six years ago the country has added five million new renters instead. If you consider the statistics which are here at face value it does not sound good, but if you take the time to think about it. You could come to the conclusion that there is pent up demand for housing moving forward which should be good for any local market including Nevada County. As new ownership fell, investors often swept in to buy while often paying cash, so the footing for a recovery is in place. The recovery is being built without leveraged financing so it should be very stable market moving forward at the same time, interest rates are at all time lows and prices are down as much as 60%. The future looks bright.

Scott Hopper - Realtor 530.477.2277