The residential loan process has become tremendously challenging since 2008. Many escrows have been delayed or cancelled as a result of the numerous recent lender and appraisal restrictions that have impacted the loan process.
“We are helping our son with his first home (condo) purchase, and really think he should work with an agent through the entire process. He and his friends feel sure that he does not need to engage an agent until ready to buy, and then he might do well to work with the seller’s agent. Could you please share your thoughts about this issue and also about the various search sites that our son is intending to use?” — A Santa Monica Homebuyer’s Dad
It is almost impossible to perfectly time either the purchase or sale of any asset, especially real estate. Often when price movements have reached extreme highs or lows, they are about to change direction.
Previous subjects we have covered in this column include the value of working with a buyer’s agent, some of the risks of buyers being represented by the seller’s agent, and home searching on one’s own versus with the assistance of a real estate agent.
The simple answer is the economic law of supply and demand, coupled with the observation of various other significant though elusive factors that impact our housing market.
With so much information available online, real estate search sites have made it easy for most buyers to search on their own for their ideal home. In fact, many current buyers believe they don’t need to use a real estate agent except to do the necessary paperwork.
The current real estate market has led to frustration and anxiety for many potential buyers. Having good credit scores, enough funds for down payment, and adequate loan pre-approval is often not enough for them to succeed in buying the ideal home when it comes on the market.
Home buyers often rush to have their offer presented as soon as possible. Sometimes their agents encourage quick action in an effort to avoid getting involved in a bidding situation.
