Is Your Offer for on a Costa Mesa Home More Likely to be Accepted if You Pay the Seller’s Closing Costs?

Is Your Offer for on a Costa Mesa Home More Likely to be Accepted if You Pay the Seller’s Closing Costs?

Even though the real estate market has had a huge decline, many of the homes in Costa Mesa and throughout Orange County are receiving multiple offers. This is because there is not a lot of inventory in a lot of areas, especially in the lower price ranges.

One of the difficulties is that there are many investors offering cash on the lower priced properties, and many sellers prefer the certatinty of cash to the uncertainty of a buyer obtaining a loan.

How can a non-cash buyer compete in this competitive market? By getting creative. Price is not always the final decision maker for a seller. As mentioned above, a lower cash offer might be chosen because of the lack of a loan contingency.

To make an offer more competitive on a Costa Mesa home, consider offering a larger earnest money deposit, consider offering a shorter escrow (if possible – allowing for a quicker close); don’t ask for termite repairs (just the inspection); don’t ask for a home warranty. Offer to remove contingencies in just a few days; you could offer to complete all inspections in 5 days instead of the typical 17. All of these might make your offer more attractive to the seller.

Basically, making the offer as simple and beneficial to the seller as possible, makes it more likely that your offer will be accepted.

Would offering to pay seller costs make your offer more attactive? It could, especially if a seller has very little equity in the home. But, relatively speaking the costs of escrow and title are fairly small, and you might find more creative ideas make you even more competitive.

If the Costa Mesa home is a short sale, you might offer to put the money in escrow immediately and agree that the escrow may not be cancelled for a specific period of time (like 60 days), after which it can be cancelled and the deposit returned to the buyer if the bank hasn’t agreed to the short sale. The seller might choose this offer over others as it shows that the buyer is serious and committed to wait for the bank to make a decision.

In determining what is most likely to get your offer on a Cosa Mesa home accepted, it is important to understand, as well as possible, the seller’s motivations in selling the home. Is it a short sale? Are they moving out of state, etc. The more you and your agent know, the better you will be able to tailor your offer to the needs of the seller.

Will paying the costs make your offer more likely to be accepted? Maybe, but there are other factors to be considered and other ways to make your offer more attractive.

If you would like to buy a Costa Mesa home and want to make certain that you are making the best offers possible, please contact me at 714.319.9751.

Wondering what homes are for sale in Costa Mesa?  See below.

Showing properties 1 - 5 of 276. See more city of Costa Mesa real estate.
(all data current as of 3/20/2010)

1. $859,000 : 265 Mesa Dr E, Costa Mesa
   
   3 beds, 2 full, 1 part baths

   Size: 2,200 sq ft

   Lot size: 3,015 sq ft
2. $499,000 : 2370 Elden Ave C, Costa Mesa
   
   2 beds, 2 full, 1 part baths

   Size: 1,400 sq ft

   Lot size: n/a
3. $1,180,000 : 137 The Masters Cir, Costa Mesa
   
   4 beds, 3 full, 1 part baths

   Size: 4,100 sq ft

   Lot size: 4,136 sq ft
4. $999,000 : 485 Cabrillo St, Costa Mesa
   
   3 beds, 1 full, 2 part baths

   Size: 2,042 sq ft

   Lot size: 8,104 sq ft
5. $658,000 : 1602 Corsica Pl, Costa Mesa
   
   3 beds, 2 full baths

   Size: 2,000 sq ft

   Lot size: 6,000 sq ft

Listing information deemed reliable but not guaranteed. Read full disclaimer.

How Do Foreclosures Work? Purchasing a Costa Mesa Foreclosure

How Do Foreclosures Work? Purchasing a Costa Mesa Foreclosure

If you’re considering purchasing a bank owned foreclosure in Costa Mesa or elsewhere in Orange County, it’s important to understand how these differ from a traditional, equity sale.

A bank owned foreclosure, also known as an REO is a result of the bank/lender taking a property back from a borrower who stopped making payments on a mortgage.

In California, most foreclosures are done by non-judicial foreclosure, meaning that a lawsuit is not filed.  Instead, the house is put up for auction.  If nobody meets the minimum bid, the bank takes the property back and it becomes Real Estate Owned (REO).

Eventually, the bank puts the house back out on the market as an REO.

Typically, REOs are well priced to sell quickly.  As a result of this and also of the perception that foreclosures are a great deal, there is usually a lot of competition for these homes.

When buying a foreclosure in Costa Mesa, or elsewhere, in Orange County, you can expect to have a lot of competition from other people wanting to purchase the same home.

If you are fortunate, you may be offered a counter offer along with several other potential buyers.  Often, you will be asked to make your highest and best offer.  The bank will then make a decision and choose a buyer.

This decision may be based on several different factors including: the amount of the offer, down payment, and other terms in the purchase offer such as the number of days before contingencies to purchase the home are removed.

To make your offer competitive and give it the best chance of being accepted, consider putting down a larger amount for your earnest money deposit and offering to remove contingencies in just a few days.

Once the buyer is chosen for the foreclosure, the buyer will need to sign several addendums, which are favorable to the bank.  Typically, they offer the bank the opportunity to back out of the purchase at any time until closing for whatever reason.

Additionally, banks do not typically make repairs on the property.  It is very important that you take the opportunity to do inspections on a foreclosure prior to the removal of contingencies.  This is especially important as the bank does not have the same obligation, nor knowledge, to give full disclosures on the conditon of the property as a typical seller would.

Another issue to consider when deciding whether or not to purchase a foreclosure is that many of them may be in disrepair.  Sometimes, the previous owner may have removed fixtures such as lights, appliances and toilets.  They may not have done maintenance as they moved towards foreclosure.  The property may have been abandoned.  All of this can lead to a state of disrepair.  Although not all foreclosures are in this type of condition, a good percentage are.

If you are fortunate enough to have your offer accepted on a foreclosure, you may get a great deal, but in determining if it is, consider the amount needed for repairs and make sure competition hasn’t caused you to over bid the price.

If you would like to discuss if buying a foreclosure is the best option for you, please contact me at 714.319.9751 for a free consultation.

Newport Beach Short Sales – Current Report

Orange County has seen a large decline in median values in the last few years.  Newport Beach, though perhaps not as badly hit due to its location next to the coast, has also seen a decline which becomes more obvious when looking at the number of short sales.

Of the 472 homes for sale in Newport Beach, only 44 of them are a short sale, meaning that less than 10% of the homes for sale are short sales.  This is a much smaller number than in other local cities.

Newport Beach

However, when looking at the homes that are currently in escrow or under contract, the numbers take a huge jump.  Of the 110 homes in escrow in Newport Beach, 53, or nearly 50% are short sales.

When looking at the homes that have sold in the last 12 months, we again see a number closer to 10% as only 64 of the 600  or approximately 11% were short sales.

Why the discrepancy between active sales, closed sales and those in escrow?  There is a great deal of congestion in the short sale process.  The lenders may take as many as six months or more to approve a short sale.  The buyer may get tired of waiting and walk away from the purchase.  The seller may wait months and months only to find that the lender declines his  request.

Lido Isle

How can you make the best decision if you are facing foreclosure?  You can make sure that you understand all of your options.

Please contact us at 714.319.9751 to discuss your options if you owe more on your home than it’s worth and are facing foreclosure.  We will schedule a free consultation to help you understand your options.  Don’t be one of the seven in ten people in foreclosure who do not talk with a professional to learn what they can do.

Huntington Beach Short Sales – Current Report

Like the rest of Orange County, Huntington Beach has seen a large decline in prices in the past few years.  As a result, short sales have become common place.

In reviewing the numbers, it’s obvious the current Huntington Beach real estate market reflects this loss in value.

Of the 489 homes currently for sale in Huntington Beach, 120 of them are short sales or in the foreclosure process.  This is nearly 25% of all of the homes that are for sale.

huntington beach short sales

The numbers are even more incredible for homes that are currently in escrow.  Of the 291 homes that are currently in escrow, 159 of them are short sales.  Nearly 55% of these homes are short sales, making them the majority of homes in escrow.

However, of the 1584 homes that sold in Huntington Beach in the last 12 months, only 260 of them were short sales.  So, despite the fact that the majority of homes that are currently in escrow are short sales, only 16% of the homes that sold in the last year were short sales.

Perhaps, we’ll see an increase in the number as more lenders begin to approve short sales.  However, I expect that we will continue to see that many homes that go in to escrow as short sales won’t close.

There are numerous reasons for this, but the best way to make certain that your short sale closes is to choose the right option if you are facing foreclosure and the best way to do this is to know what your options are.

If you are upside down in your home and facing potential foreclosure, please contact us at 714.319.9751 to discuss your options.

Costa Mesa Short Sales – Current Data Report

Short sales have become a fact of life in all areas of Orange County real estate, and Costa Mesa is no exception.

Of the 176 homes currently for sale in Costa Mesa, 57 homes are short sales or in the foreclosure process. This is over 32% of the current inventory of homes.

Costa Mesa sign

Of the 154 homes that are currently in escrow, 104 homes are short sales or in the foreclosure process.  This is over 2/3 of the homes in escrow.

Of the 713  homes that sold in Costa Mesa in the last 12 months, 169 were short sales or homes that were in the foreclosure process.  This is just under 24% of all of the homes that sold last year.

It appears from this  that far fewer homes are closing escrow than those that go under contract or in escrow.

Perhaps this is because of the difficulties of getting short sales closed and understanding when a seller might qualify for a short sale.

If you would like to know if you are a good candidate for a short sale, please contact us at 714.319.9751 for a free consultation.

2184 Canyon Dr 2, Costa Mesa, CA 92627 (MLS # S601662)

Lovely end unit. Close to beach and nature trails. Soaring cathedral ceilings given an open and airy feel to this home. Private fenced patio off dining area. Wonderful two-car attached garage with epoxied floor and built in cabinets and workbench. Perfect for projects. Newer water heater. Cozy fireplace. If you enjoy the beach, it's just a short bike ride away along the Santa Ana River bike path. In addition, the home is within walking distance of Fairview Park and the Talbert Preserve. Come fall in love with your new home.

Property Type(s): Condominium, Residential

Price History

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Christine Donovan, Donovan Group Realty Inc

(view all details for MLS # S601662)