Buying bank owned homes strategy This Sunnyvale bank owned home 418 S. Mary Ave was sold quickly with over 20 offers. The asking price is $420,750 and the sold price probably will be over $550,000.                                                                                  How to buy a good deal of bank owned own homes, you need to follow the following rules: 1). Price and initial deposit. The price is major issue. If you only qualify to buy $430K and try to put an offer to buy a home for the asking price then you will be disappointed. The asking price is like a teaser price which is not the reflect the real price.You need to ask the your agent to run an Comparable Market Analysis which will show the current value that include of homes on the market, pending sales and sold homes in the neighborhood. The May home’s comps  shows over $600K with good condition. This home’s condition is marginal with non-permitted remodeling work. You need to put a correct purchase price with 3% initial deposit. 2). Contingency period: This the period of time for buyer to inspect the home and find a real estate loan . Don’t take longer then 15 days to do those activities. 3). Close the home to be within 30 days after acceptance. The bank usually likes the home to be close within 30 days All cash offer will be the best to them. Grace Keng of RE/MAX Real Estate Services DRE#00919545  the members of the National Association of Realtors, (NAR),the California Association of Realtors, (CAR), and the Silicon ValleyAssociation of Realtors, (SILVAR),  MLS listings Services, (REIL).

The left side  Sunnyvale Bank owned home garage converted to a big living room. The right side of Sunnyvale REO home garage coverted to 2 bedrooms and 1 bath. The non-permitted construction is an issue in any home sale. The bank owned home sellers do not disclose anything and it will only sell it “AS IS” condition also. On top of this some lenders don’t even give loan to  the homes with non permitted construction, so many those homes end up sold to the all cash buyers. 

The new buyers will assume all the responsility. If the neighbors complain to the city for this addition. then  the city  building code inspector  would decide if the structure stays or goes. Some of the cities will require the buyer to convert the garage back as an orginal garage. Some cities will allow you to  retrofite up to the current building code and issue you a code compliance.

Buying a Unpermitted alternation homes do have some risk involved.

We all know we in a buyer’s market, the buyer’s have a buffet to choose from all kinds of the homes. There are a lot of good deals now I found a good REO (Real Estate Owned) home at 418 S Mary Ave in Sunnyvale asking price is only  $420,750. It is a 3 bedrooms 2 baths 2 car garage home. The schools are Cumberland, Sunnyvale Middle, Homestead High. This home is listed by REO group of RE/MAX Real Estate Services. Last spring there was a home at the Mary Ave sold for $692,000.  This home is about $270,000 lower then last home. This home is a REO home. What is the tips to buy a REO home?

• Finding a good realtor: A good realtor will help you find the home and assist you to submit the offer.
• Prepare the financial statement: Unless you can pay all cash home then you need a direct lender to write a pre-approval letter . You meet with a few lenders to find out one can offer you the best interest rate and term and just work with one.
• Determine the market value of the home: Ask the realtor to prepare a Market Analysis for this home. You use the current available homes, pending homes and sold within 1 years near by homes. Don’t low ball the home. Usually the bank owned home are low. If you think you can still negotiate on top of them you will not get it.
• AS IS condition: Most of the bank owned homes sold “AS IS” condition and without seller’s disclosure either. It is very important to allow yourself time to inspect the home before you commit to buy. That means what you see is what you get. The biggest rish of buying “AS IS” condition home: there are hidden damage to the home. It could be the broken foundation, leaky roof, or unpermitted addtion etc.  You need to look carefully before you submit an offer.

• Sweeten the deal: You may shorten the inspection period. Offer to pay half the title insurance cost. Make sure the buyer’s agent follow what  requirement was set up by the listing agent. If the listing agent required using BOA to qualify you, you have to do so. This home a work sheet is required, then your agent has to prepare the work sheet.

Have you heard of the REO homes? It is also known as Bank Owned property; and they are the investor’s golden dream. These Bank Owned properties (REO) offer many financial advantages while lowering the risk associated with the purchase of a foreclosed property. The REO property offers quick equity due the purchase price is low. You may check a home in SC the investor walked away $108,000 gross in three months of owning this REO home. Those properties will always be vacant. They are ready for rehab, rent and home ownership. There are one in Cupertino, CA. The address is at 10524 S TANTAU AV, Cupertino 95014 (Cupertino)
$579,000 Beds: 2 bedrooms Baths: 1 bath. It was listed by Lydia Kou Alain Pinel Realtors. If you like to buy the bank owned home in Silicon Valley, Please contact me.

I have buyers asked me: ”With all the craziness in the financial market, is this the good time to buy a home?” or  “ Does the real estate prices hit bottom yet?” I will address those questions in coming issues.

I found this Sunnyvale Bank owned home in CA is interesting.

555 BALSAM AV, Sunnyvale CA94085.It is a 3 bedrooms and 2 baths home with pretty good size (1425 sf) was listed for the price $429,900 and it is listed today by Susanne D. Gomez of Coldwell Banker. Last time is was sold on October 16, 2006 it was sold for $696K. It short 3 years the home value has dropped $267K for about 35% of the original value. I found out the homes under $455K about 90% of them are either short sale or REO home (bank owned home).

A lot of Silicon Valley buyers are timing the market to buy into the real estate. I think the time is now. Last month I have one client bought a San Jose single family home for $250,000. He is very happy to buy a home at the low point of the market. I noticed the real estate market is very active for lower end as $500,000. Those homes sold quickly with mutiple offers. My another buyer puts an offer to a San Jose home asking for $355K. In a week the seller received 13 offers and the best offer has forwarded to the bank.

You can use the this link to research the homes price and market etc. http://activerain.com/blogsview/1061060/Real-Time-Market-Data-What-Do-You-Offer-Your-Readers

As I research the real estate market. I found other realtors report for other market.

329 N MURPHY AV, Sunnyvale 94085 $444,000 Beds: 3 bed(s) Baths: 2 bath(s) listed by Davis Lewis of Coldwell Banker. This one is a bank owned home just on the market April 23, 2009. It has 3 bedrooms 2 baths near central expressway. It is about 1540 sf  and 5200 sf lot. Currently this home is the lowest priced bank owned home in Sunnyvale, CA. This home was sold for $749K on August 25 2006. It went down for $300K. When you see the home has dropped about 45% in just 2 years 7 months. No wonder the lower end (under $450,000 ) Santa Clara county homes sold quickly and with multiple offers. Let me use another example 3581 FOREST AV, Santa Clara 95050  4 bedrooms 2 bath(s) for about 1350 sf and 8000+ corner lot.It is a true fixer up. It was on the market for $400,000 . It took only 7 days sold it with 14 offers then it closed in 13 days and sold for $415,000 with “AS IS” condition. It was listed by Realty World-engstrom & Assoc

Sunnyvale Bank owned home Sunnyvale REO homes

Sunnyvale Bank Owned homeI just found out a great Sunnyvale Bank owned home or REO home at

701 Jackpine Ct.

Sunnyvale just on the market as February 12, 2009.  It is a 4 bedrooms, 3 bath and2 garage with about 1832 sf and 2 story home. Now I will believe there is a gem in REO home.  Some buyers thought there must be some thing wrong with bank owned home. I don’t think so. I do see you have to work with an experienced Silicon Valley Realtor who understands buy or sell a REO home. It is more then ever the buyers need to be aware.The buyer needs to hire an inspector to inspect the home because the bank seller will not and can not give out the seller disclosure. The realtor needs to provide the buyer a written visual inspection report about any visual issues the realtor had found.  Another red flag will be city permit. Is there an non permitted bathroom? I have a buyer almost going to purchase a Sunnyvale bank owned property. We found out that there are additions done without permit and the city knew about it. In another words, the lender will not offer a home like that.

How to buy bank owned home Silicon foreclosure home Sunnyvale REO home

The Fannie Mae has sent out a new update on February 6 2009, to allow the investors to own up to 10 investment properties. Wow! It will start March 1, 2009 to replace to old guide line of 4 properties. In anther words, the investors and 2^nd home buyers can purchase up to 10 investment properties. 1). The borrowers has to purchase those invest properties on or after March 1, 2009.2) The Borrowers must maintain a credit score FICO  at least 720. The maximum L/V to be 70% to 75%.3). The borrowers cannot did not file the bankruptcy or foreclosure. The borrowers do not delinquencies of 30 days or more within a year.

With the new updates it will be a perfect time to load up investment properties.

1).  There are still many REO homes, Short sales and distress sales in

Silicon Valley. The banks and assets managers are more skilled in handling those

Silicon Valley short sale, Bank owned homes. You may read another blog of low end of SJ downtown homes are hot.

 2). The Silicon Valley rental market is still strong. Due to the side effect of foreclosures is climbing that there more renters then ever need to rent. From the rental survey sources of  Marcus & Millichap Research Services, Real Facts Online. It is still a landlord’s market. 

County	2nd quarter, 2007	2nd quarter 2008	Year-over- year change	Vacancy rate
Alameda	$1,337	$1,409	5.4%	4.7%
Contra Costa	$1,250	$1,328	6.2	5.1
Marin	$1,528	$1,591	4.1	2.8
Napa	$1,264	$1,307	3.4	3.7
San Francisco	$1,757	$1,926	9.6	4.0
San Mateo	$1,654	$1,786	8.0	4.1
Santa Clara	$1,569	$1,679	7.0	2.7
Solano	$1,137	$1,164	2.4	5.0
Sonoma	$1,140	$1,212	6.3	5.5

*Buildings with five or more units. Average rent includes units that range from studios to four-bedrooms. 

Grace Keng, Silicon Valley real estate agent,  member of the Silicon Valley Association of Realtors (SILVAR) and memberships in the National Association of Realtors, (NAR),
the California Association of Realtors, (CAR) and PhD of Realtor - Certified Residential Specialist (CRS).

Sunnyvale Bank Owned home

1507 BEDFORD AV, Sunnyvale 
$949,900 Beds: 3 bedrooms Baths: 2 baths about 52 years old with large lot 8200 square feet and inside is 1508 square feet. The best part of this home is located within the

Cupertino schools district. The

West

Valley elementary is about 2 blocks away, Cupertino Junior High is close and same as

Homestead

High school.Those 3 schools combination can be the best trio schools in

Sunnyvale. The last years comp sold at the Barton a little large for $1.15 Millions and even the last one closed in the neighborhood is $952K. There is another new listing for the same schools area 1858 sf asking 1.05 Million at

1057 CELILO DR

.

I will held an open house 2-5 PM January 24,2009.

Sunnyvale Bank own homes for sale

This Sunnyvale Bank own home just cute as a button.

It is at a beautiful trees-lined street in old Sunnyvale.

It has two bedrooms and one bath plus an office in the fornt part of the house. It will be perfectly for the home office. I like the large opened living room with fireplace and remodeled kitchen with granite countertops and oak cabinets, nicely landscaped in front yard. You will fall in love with granite. Move in ready.

 

Another Incredible bank owned

Sunnyvale home. Very low price and could go to the excellent

Homestead high schoo.l List Price in mid $ 500,00. For more information please contactgracekeng1@gmail.com for more information.Grace Keng, 408 733-8887 RE/MAX RES, CRS, Rated number #2 featured Cupertino Realtor on Activerain.com and Localism.com. California relocation, local events, homeowner information Silicon Valley homes, Santa Clara County, San Mateo County of California

Sunnyvale Bank owned home Sunnyvale foreclosure homes Sunnyvle REO homes