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Regular Visitor
lovebird
Posts: 4
Registered: ‎12-25-2012
0

Should I give up for a year? Honest opinon please~

[ Edited ]

I live in other state, decided to move back to Southern Orange county and purchase a home for us to live in.

 

Big problem while I try to purchase home is that we have a German Shepherd.  It is extremetly difficult to find a place that I can rent 2 bed month-to-month under 2500 while I look for a house to purchase. (It is difficult to find just month-to-month rental to begin with.) My dog is already an early senior stage, and AKC certified good citizen, but always breed restriciton or weight restriction is in the way, so it is really difficult to find a place to rent by MTM.

 

I just started to look for a house, sent only one offer in.  20%+ down and fixed 30 yrs mortgage looking for under 500k single family in Lake Forest, Laguna Hills, Laguna Niguel, Alis Viejo, Mission Viejo area.  My loan is pre-approved, and my FICO is 780.

 

I am planning to come over to OC early January and try to purchase (get my offer accepted) by end of Feb.   Would you please someone tell me what honest opinion is.  What do you think is the possiblity to be able to get my offer being accepted?  

 

Almost all single family lease is 12 month lease.  Should I sign it and wait for a year to purchase?  How do others manage the situation coming from other state to purchase a house in OC?  2 bed appartment which is the very last choice for me still costs 3000/mo (normal 12 months lease is around 1800) if I go for MTM, that is crazy.  

 

My close friend who purchases properties for investment (not cash offer), she asked her agent to find a property around 500k was told by the agent, "forget it!."  

 

Honestly, how much chance do I have to be accepted for a home puchase during the next couple of months?

I am normal when it comes to search for a house.  Not right behind the super busy street.  Not in the unfavorable neighborhood.  3 bed with backyard single family house.  

 

How often does everyone compete with cash buyer?  I am just currious if you have good idea.

Contributor
HouseFisher
Posts: 17
Registered: ‎06-12-2012

Re: Should I give up for a year? Honest opinon please~

http://m.ocregister.com/articles/offers-381617-buyers-homes.html

I think that article will give you a great idea of the housing madness right now in Orange County. Who knows what effect the fiscal cliff will have on the housing inventory or prices (if any) but if this market remains the way it's been for let's say the last 9 months then I think getting a house by the end of January/early February is going to be very difficult. Now I'm not as strong of a buyer as you are but I have a friend shopping with cash and he's also been looking for months. I'm not trying to bring your hopes down but you asked for an honest answer so I hope this helps.
Silver Contributor
JK_1
Posts: 350
Registered: ‎04-15-2008

Re: Should I give up for a year? Honest opinon please~

I agree with House Fisher as far as the difficulty just because inventory is so low right now. Having said that you might try to structure your lease with a clause that says you can move out if you have an offer for a house accepted.  We did this and it allowed us to get out of our lease with no penalty. It's worth a try.

Gold Contributor
BobPhillips-RE
Posts: 1,701
Registered: ‎12-13-2010

Re: Should I give up for a year? Honest opinon please~

[ Edited ]

Hi Lovebird,  Have you considered apartment complexes as your - hopefully - temporary rental home?  Most of them are pet friendly, and don't usually require a long-term lease. ( In addition, as JK-1 mentioned, the lease market is good right now, so, even if you have to sign a one year lease, it should be fairly easy to advertise and fill your vacancy, where the landlord might even get more in rent - as they are rising, also.)

 

You didn't mention whether you have additional family members - besides your pooch.  I realize that an apartment is usually restrictive to dog ownership - no yard, for him to romp in - but most South O.C. towns have plenty of nearby parks, with poop-bag dispensers - to ease the situation, especially if you have multiple family members to share the dog walking chores.

 

In addition, make certain that you have a GOOD local lender lined up, with a bonafide PRE-APPROVAL for your targeted price range. ( I have a couple I can HIGHLY recommend.)  

 

Next, make sure your agent covers ALL the bases, including keeping an eye on short sale listings that might already be in escrow.  If one of those falls out of escrow, they are an excellent candidate to jump on. ( You might even scout out a few that seem more likely to fall out, and submit backup offers, so that they don't even come back on the market - they just come back to you.  An experienced agent can identify such potential candidates.)

 

All in all, don't give up hope.  Just make sure that you, and the agent you choose, are in a position to cover all the bases, in your house hunting search. ( I sold two houses this year that were not even in the MLS, so I know it CAN be done.)

 

Good luck in your search.

All this, of course, is merely MY opinion. Thanks for reading.

Bob Phillips - Realty ONE Group - South Orange County, CA
Platinum Super Contributor
Nanomug
Posts: 10,050
Registered: ‎05-30-2009

Re: Should I give up for a year? Honest opinon please~

There is no guarantee that a year will be better.  It could be worse or better or the same.  

 

Buying in this market can take time and fortitude.  My young relatives recently purchased which the only home they offered on.  Others I know have been looking for many months in the same area.  

 

I think if you want to purchase then you take it one step at a time and figure it out.  Pre-approved by at least two lenders; know what you will compromise on; know what is a deal killer and a preferred geographical area.

 

The one thing that is guaranteed is that if you don't house hunt you will not buy a home.

Regular Visitor
lovebird
Posts: 4
Registered: ‎12-25-2012
0

Re: Should I give up for a year? Honest opinon please~

[ Edited ]

Hi all,

 

Thank you very much for your honest opinion!

 

Housefisher

I went to the link that you gave me and that really gives me a good idea of how the market is really like today. (I am learning that rumor is not just a rumor or it is not something happening only to some people who is doing something wrong.

 

JK_1

Your advise is really helpful!  I will defanately try to ask adding the clause you mention for a 12-months lease.  I was really tired of looking for MTM rent, and really do not want to live in an appartment especially knowing this could really become a long term.

 

 

Bob Phillips

Yes, I was thinking that realtor is important, and would like to see other lender's offer as well.  I think I will contact you when I am once in OC.  I would like to know the recommended lenders you mention. And the name of agents who you can recommend in the area.

 

Nanomug

Thanks for the advise.  I think having more than 2 lender approvals is a good idea!  I was thinking I should shop around at least a few more places in OC. And I really appreciate your thoughtful words reminding me the basic which I tend to forget, and your relative's experience give me a hope!

Regular Contributor
Viss
Posts: 132
Registered: ‎05-24-2012
0

Re: Should I give up for a year? Honest opinon please~

As someone who just shopped in that same area over the last year... It's SLIM picking. My goal was to pay less than $500k for a house but that didn't happen. We ended up paying $525k. We shopped for almost a solid year before finding something we wanted. We refused to settle and we refused to overpay (we wouldn't pay anything over the 20% in the event a house didn't appraise). Maybe we were just picky in terms of what we wanted from the house, the area, which roads it was against, the school system it was in, etc. So personally I think you're going to have a very difficult time finding something that doesn't need a lot of work in your pricerange.

Gold Regular Contributor
sheriff
Posts: 2,050
Registered: ‎06-01-2012

Re: Should I give up for a year? Honest opinon please~

I seriously believe you should buy as soon as possible.  The next downturn will not be for a few years and prices then may not get down to the point where they are now.

 

The above prediction is mine.  Past performance of my predictions are not a guarantee of future results.  Always consult a licensed fortune teller before acting on predictions.   :smileyhappy:

Regular Visitor
kimkat
Posts: 7
Registered: ‎01-05-2013
0

Re: Should I give up for a year? Honest opinon please~

i don't know if you're still looking, but if you are, here's a great buy in irvine, a short sale.

open house today.

good luck with your house hunting!

 

http://www.redfin.com/CA/Irvine/36-Alcoba-92614/unit-46/home/5552943

Contributor
ChristopherJLee
Posts: 26
Registered: ‎03-17-2011
0

Re: Should I give up for a year? Honest opinon please~

Sign a lease for another year but try to add in the contingency that you'll need to back out if/when you find a house. It's very difficult to close on properties right now because of low inventory, bank negotiations if it's a short sale, etc. so it may be a while til you find a house to close on anyway. Also, I thought if you back out of a lease that you only owe one month or do you owe the entire term?