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Top Three Things Sellers Must Look on Cash Offers with NO Contingency

September 10, 2012 by

In this low inventory housing market, more buyers started to put Contingency-free cash offers in order to stand out among competitions. Here are the top three things seller must know before accepting an all-cash offer with no loan contingency, no appraisal contingency, and no inspection contingency.

  • Where are buyers’ funds: An all-cash offer with no financing contingency is a good deal only if the buyers actually have liquid funds to close. Make sure you verify this as a condition of accepting the offer. Always ask buyers to provide proof of funds. They could be bank statements, investment account statements, etc.  If buyers have all their funds in stock, make sure to discount it by 70% to cushion for the market drops. Verify the proof of funds before you accept the offer.
  • Require buyer to put deposit in escrow account within three days of offer acceptance. For cash buyer, you could ask more than the standard 3%. Also, if you do not see the deposit check in escrow account within three days of acceptance, do not hesitate to ask buyer to perform immediately.
  • Be aware of buyers who make all-cash offer but intend to close the deal with mortgage. If a buyer put an all cash offer but asks for a long close of escrow time, ask why. A cash offer can be closed in as few as seven day.

 

Filed Under: Real Estate Knowledge Tagged With: , , ,

11% Buyers are Foreigners in Clifornia

August 1, 2012 by

Cheap houses, weak dollar and rising property values draw more foreign purchasers of US residential real estate. Data from National Association of Realtors showed that Florida, California and Arizona are the top three states for foreign buyers. 26% of buyers in Florida are foreigners and the percentage is 11% in California and 7% in Arizona.

The top three countries where these buyers are from are Canada (24%), China (11%) and Mexico (8%).

39% of the houses purchased by these foreigners are used as primary residence and 23% intend to use them as vacation homes and 17% use them as rentals.

Foreign buyers purchasing value increased by 24% in 2012 and the number reached 82.5 billion dollars.

Filed Under: Housing Stats Tagged With: ,

30 Year Fixed Rate Hit 3.375%

July 18, 2012 by

30 year fixed rate for conforming loan hit 3.375% for people who own their home as primary house.  It’s a new low since it dropped to 3.5% a few weeks ago. If you loan amount is 417K or less, it’s a good opportunity to lock a very low rate for 30 years. Give me a call as soon as possible to check if you can qualify for this rate. If your loan amount is higher than that, high-balance confirming loan rate is very low too. We can also look into different options to restructure the loan

If you have a non-fixed program for your loan such as 5/1 ARM or 7/1 ARM and you plan to keep your current house for a longer period, it’s the best time to change it to 30 year fixed program.

 

Filed Under: Mortgage Rate Tagged With: , ,
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