What is the Factor of Thirteen? Simply put, it is the home price which makes financial sense for real estate investors, and is arrived at by figuring what a home’s yearly rent will be and multiply by thirteen. In many communities of Laguna Niguel and South OC we have hit that price point. This is the reason prices will bottom out.
Take into account the record-breaking low interest rates, and 2012 looks even rosier. Remember, a one percent rise in interest rates means you now qualify for a home whose price is 10% less. Buying while rates are unbelievably low means you can afford a nicer home. How can you resist?
If you are a first-time home buyer right now, or even a standard 20% down buyer making offers, you have probably been beaten out more than once by cash buyers. Take heart, because cash buyers tend to get overconfident and think they will get a 10% to 50% discount. That is usually not true. Cash will beat out financing when all else is equal, however. Some Fannie Mae foreclosures have a fifteen-day moratorium against investors to give owner-occupied buyers an edge.
Remember to count backward. What? Yes, if you want to buy this summer remember that the normal escrow is 30 to 45 days and the normal short sale is around 90 days, but can be two or three times that long. To buy in June you should be looking now.
Even with the power of the internet you need a knowledgeable Realtor more than ever. Rich Dad Poor Dad says “use a broker”.