Solano Real Estate Scene: It’s a seller’s market
I am not sure what the exact numbers are today in Solano County, but it feels like there are four to five serious preapproved buyers for every home for sale.
Many sellers are getting multiple offers and on one Vacaville home we saw something like 20 offers in April. The winning bid was $100,000 over asking price with no loan or appraisal contingency. Buying a home with no appraisal contingency means that the buyer was willing to pay over the appraised value, which assured the seller and the Realtor that the purchase agreement would likely close escrow.
This home was a super nice house in a tract home neighborhood and the buyer was not buying the home as an investment. The family bought their forever home and the property had everything they were looking for, so paying $50,000 to even $100,000 over what a similar size home sold for in the past did not matter to them.
Sellers are occasionally fearful of listing their homes for sale because they are scared that if they sell, they will not be able to find and purchase their move-up or move-down house. One way to win in this market is to buy first and sell after you close escrow on your new home.
Some people have a ton of equity in their departing residence and a bridge loan is a possible solution for a large down payment that is paid off when the old home sells.
Folks over 59 ½ years old with substantial IRAs and 401(k)s can qualify to buy before they sell by temporarily setting up a monthly IRA distribution for enough income to qualify for both houses, which can be stopped after they close escrow on their new home.
A local, experienced lender and Realtor can show you all your options with no cost or obligation so you can sell your home in this seller’s market and buy the home of your dreams.