Dealing in todays market - Bay Area

The San Francisco Bay area this time of year, on a clear sunny day, is like nothing else in the world. The crisp, clean air, great shops and restaurants, and house hunting schedules always give one something fun to do.

We know that there are some of the great deals to be had are in this area right now. If one has the means for a solid down payment, and the market they are in is fixers($300K-$400K), new condos($260K-$450K), or starter homes($400K-$600K) there are deals to be made. For the market in the higher end homes in the Bay Area($1M- )deals are not as plentiful as there is still a bit more buyer competition.. The U.S. economy has not been as difficult for the higher income earners over these past few years of decline. In fact, studies show, that the higher income demographic has shown a definitive increase in their earning and, subsequently, spending power. This makes the upper end home market still highly competitive.

In a slower real estate market, such as what we are experiencing in numerous areas around the United States at this time, it makes sense that the hardest hit economic demographic would be the lower end to mid level home market. These are the buyers that will be the first to be skittish, as well as, the borrowers with the lowest average FICO scores. With those buyers being more hesitant to enter the market, this creates a larger volume of inventory of homes. This will give the buyer the advantage creating a lower overall pricing for the homes for sale. With that said, homes that are new tend to sell at a bit higher pricing, as you get a better home for the same square foot appraisal value. Although awesome deals can be had for home buyers looking to do a little work. In a tighter market, if you can bring in a good down payment to the table, in an investment time such as this, it will help with the loan acquisition, loan rate, and bargaining power.

It is best to get Pre-qualified with a lender before one goes to the negotiating table. That way one is able to negotiate, and do the old "walk away". Realtors are having hard times right now, as well as loan agents. So, negotiation will be the power move to get you into your new home, for a great deal, now. Make sure that the loan agent tries to find a loan package that is best for you, the borrower, and not necessarily the best loan agent's commission.