The year’s best day for buying a home

 


 
Introduction and Overview

Hello there. The best day to buy a house is when we'll talk about it. Also, a consumer guide to closing after you sign the documents. Los Gatos home of the week, list price productions, and Tuesday's Santa Clara County highs and lows report. Let's get moving. 

So you can get back to bed because I slept like crap last night. All right, let's see. What are we drinking? Cold coffee. This year's best day for buying a home is fast approaching. November timeframe is the best time to buy a house. If you're in the market for a great deal, November is the time to get into a contract March, and April, and ay as your selling season.

That's when most buyers come out and become buyers or a feeding frenzy, a buyer frenzy, and during the summer slows down. And then it picks back up around August, or September, because kids get back into school, and then slow down. And then it really slows down. I have one listing that I put up last week and I have one potential bite on it.

And then I have another listing that has seven offers on it. And I have another one that had four offers, three offers. And that one went way over. This is across the United States. The best time to buy or to close is on December 4th, which if you go back 30 days on average to close the house, you get the best premium above the automated valuation model we have our own Zillow number, but it's called an ABM.

And it's an algorithm and we don't really go by it. It's based on where we think we should start and then goes up from there. As fall turns into winter data shows, that home prices tend to fall. Adam found that November consistently offers the best opportunities for savings as home premiums and competition reached their lowest points of the year.

Does this mean you should wait for an entire year? No, because the rates are horrible in November So you're going to get better. Rate come January when things are really slow and you can negotiate that down. You can get a seller credit or you can buy points, et cetera.

Other days when home buyers can get the best deal include October 2nd when home prices average a 5 percent premium. Remember summer doldrums, September comes in, people get back to work and then we find desperate sellers. And December 24th and January 16th, both of which averaged 5.

1 percent in November 3rd, which is a 5. What does this mean? It means there are certain days throughout the year you can absolutely get a good deal. Now, January 16th, that means right about now, you should be shopping for a home and getting a decent bargain on your home. Are you going to get below asking?

You could. If it's in the wrong condition overpriced and in a bad location, do you really want that house? Do you want to fix her up? Or do you want to turn to the ey house? Do you want a mansion or do you want a shack? Totally up to you. So just keep that in mind. This is done by the Scotsman guide. The Scotsman guide is for lenders.

Loan professionals to understand the market better. And that's where I got that from. 

Understanding the Home Buying Process
This is from the National Association of Realtors consumer guide steps between signing and closing on a home. You've done all the front-end research. You've gotten pre-approved. You've gone home shopping. You've gotten exhausted.

You've finally gotten a contract. Now what happens? What happens after I sign a purchase agreement? There are a couple of things that we have to run around and do on your behalf, including getting the deposit done, opening escrow, doing due diligence, and making sure your loan is fully approved.

So we'll go through that. 


Escrow and Closing Details

What happens after you sign the purchase agreement, you will go into escrow. It's a third party that will take both your contracts and make sure that it's every line is dotted T is crossed cetera, and everything is the same.

And then they'll accept your initial down payment. When it goes to closing, they'll arrange a payoff for your existing loan order signs or sign-offs and record the deed. To the county assessor and then also fund you. They do a lot. They do a ton of work Some places don't do title insurance. You have to have 2 different companies doing it. Some places have lawyers doing all this. It's dependent on where you are I'm telling you about what we do here in Northern California. In southern California, it's even different.

What goes into an escrow account? Does the buyer pay the earnest money deposit? Typically it's 3%. It could be a thousand dollars. It could be a hundred dollars. It could be 10, 000. It could be 1%, but we typically want to see a 3 percent deposit into escrow as earnest money.

One, it gives consideration to the contract, which means it's a legally binding contract, We have something inside the contract that says liquidated damages. The contract is designed to protect both the seller and the buyer. This is really trying to put you to sleep, but understand that there are contingencies put in place to protect the buyer's property condition.

Loan approval, appraisal, and the need to sell your house. If anything happens during the contingency period or the due diligence period, the buyer can back out.

Losing a job means they're not loan-approved and are raised. The seller doesn't want to come to terms, et cetera, or the condition, the property inspection report comes back and there's 20, 000, 50, 000 worth of termite damage. And the seller doesn't want to fix it. The buyer is allowed to walk away from that and get their report there and earn us money back after that period, typically 17 days after that period.

The buyer has nothing to hang on and liquidated damages state that if the buyer defaults for any reason outside of the contingency period, the seller is owed that money. Now again, California courts play favoritism to the buyers, so you can go and argue that. I'll throw out things like what happens if I break my leg and I can't work on the 25th day and now I can't work.

So I can't afford it or I get laid off and I can't afford to pay for this house. A seller would agree, You can't buy this house. You don't have a job. I'm going to let you have your money back. But sometimes ego gets involved and that's why we have all this stuff.

3%. That's the maximum you're allowed to keep as liquidated damages. And when we're selling a house, the agent wants to make sure that they're protecting the seller. So they're asking for 3%. Could it be a thousand dollars? It absolutely can. If you have five, 10, 1or 5 offers and you're a thousand dollar deposit and everybody else is putting 3%, which one are you going to choose as a seller?

What do you need to do before you can close? You need to make sure your loan is approved. You're going to have to resubmit all your documents, your WW-2s your bank accounts, pay stuff, blah, blah, blah. The lender is going to call back, make sure you have a job, and do all this stuff. And then they're going to give you a final net sheet of how much money.

You need to bring in, it's going to be some erroneous, odd number, but that's the number you have to come in with. A good lender is going to show that to you right before you go to closing and say, make sure you have a check or wired this money to the escrow account so we can close on time.

You can also ask for, repairs from from the seller. That kind of thing. And then there's also, let's see, homeowners insurance. You're going to have homeowners insurance and sometimes fire insurance earthquake insurance Impound accounts and all that stuff.

So you got to make sure all that stuff makes sense to you and you understand it completely because you're talking about million, 2 million, 12 million. So make sure you know what you're doing. There's also an appraisal of a professional opinion of value. , I can't give it to you because I'm involved in the process, but we have a third-party person who gets randomly chosen.

To do that appraisal The lender takes care of it. He pushes a button and then an email goes to an appraiser and he says, do you want to take this job? And then they say, yeah. And then they do an appraisal. 

Inspections and Appraisals

And that can be anywhere from 500 to 1, 200 these days inspections. Do you need an inspection?

You absolutely don't need an inspection unless you're doing USDA or VA. Sometimes FHA, depending on the lender, and inspection, there are a few different ones, but the main one we work with is property inspection, which should include a roof inspection. And also a termite or pest inspection. There's the foundation, there's a pool, there are all sorts of other things.

There are Property line assessments and all these different types of inspections You can get a septic tank inspection. You can get well, water inspection really depends on what you're doing. The fact is that we're trying to make real estate, transparent transactions.

So the buyer knows what they're buying. If you say, I am not going to buy this house, Without 15 different inspections, that's your right. But if you have 10 or 15 offers and you're competing against that, there you go. That's a decision. A good seller will provide those inspection reports so you can buy them and know what you're buying.

And there's a case of liability. I've heard of sellers refusing to do inspections and refusing to let the buyer inspect the house, but then you're taking on all the liability. Is it a wise choice to do that? I don't think so, but that's not my choice. It's the seller's choice. I always recommend that they have all the inspections done.

That way, you know what you're buying. yYou'realleviating yourself of that liability and preventing potential lawsuits. How long will this take? I can close a loan in 10 days. I can close a house in 10 days. Typically we have 30 days. I see it go from 15 to 25, 30, and 40, depending on the needs that really depend on the seller and the buyer's needs. If you want a quick close, we can close it quick, but you have to do everything we talked about before. Done before, so make sure you do it. What happens at close while you sign documents, is you get an old cramp in your hands, you have to have your thumbprints, make sure you have your IDs, and that you've wired all your stuff.

So there's a lot of pre-planning and then you go in and sign all the documents, including a deed, a promissory note, and all the other disclosures that are going to have to happen with wet ink. You use a pen, then you sign, and three days later you close.
That's pretty much it. There you go. This episode is brought to you by the Home Inspection Checklist. If you're thinking about selling your house, download this Home Inspection Checklist. It does not circumvent or remove the need to have a professional inspection done. It allows you to go through your house, nook, and cranny, and figure out what needs to be repaired before you have an inspector come in so you can have a clean inspection report.

But also, make sure you disclose every repair you've done. Do it now. 

Home of the Week and Market Updates
Las Gatos home of the week. This one is within walking distance to downtown, which is North Santa Cruz Ave. Not my listing. Five bedrooms four and a half baths, 4, 000 square feet, built in 1978 and it's Glen Ridge Ave. And this looks like it's a tinderbox.

It's a huge house. Look at that. This is nice.

And I can just tell you by looking at the map that this is in the fire zone. So yeah, when you go to close, you have a loan on this house, which is 4. 9 million. You're going to have fire insurance.
There is no order to these photos. And no floor plan. And then this is the list price reduction. This is a burning tree, not my listing for a bedroom, two baths, 1600 square feet built in 1970, 1. list price was 1. 55 and it's right here, right by the golf course and Santa Teresa,

but it's in Martinville. This is An okay house. I don't like the way the upstairs is situated and it always feels like every time I go into this model, it feels like there's a lot of movement of the joists, just the way they designed it. Not my favorite. There you go. 

And then highs and lows. Los Altos Hills is the most expensive house in Miranda. 

Not my listing took 40 days to sell original was 13 million dollars Then they dropped it to 12 million dollars final sale So they walked away from almost a million dollars, but they sold it. Let's take a look at this bad boy.

Yeah, it's nice when you're a market maker, you can wait, but you're also not gonna get the deal sometimes. 'because there are people out there willing to buy these houses. Wow. Three Tesla banks. Yeah, it's a nice house. And then the lowest-priced house is this one in Claremont. In San Jose.

Listed at 6 99, sold for 800, took six days to sell two bedrooms, one bath, 948 square feet. Holy moly. This is tight, I'm just getting claustrophobic thinking about it. There you go. And then the ones that are still for sale are Laa Vida Real and Del Puerto Canyon Road, Livermore. This actually takes an hour and a half to drive to San Jose.

Believe it or not, unless you have a helicopter, then you have 80 acres and you can rebuild it totally up to you. And here's a chart of the weekly highs and lows.

Conclusion and Final Thoughts

I'm tired. I've been up since three 30 this morning. I'm exhausted, but I did go to the gym. No excuse not to go to the gym. Thanks for watching. I'm Vito with Apotano. Have a great week. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg

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