Realtor® Magazine’s editors have frequently described the financial hurdles facing first-time buyers in today’s market. Even so, despite rising home prices and stalled inventories, a third of recent existing home sales have been to the newbies.
A pair of recent RM articles directly (and indirectly) explored several factors that help explain some first-timer successes. The articles dealt with bridge loans and some advantages Costa Mesa first-timers may have over repeat buyers.
- Last Thursday’s “Bridge Loans May Help with Intense Bidding Wars” describes the solution that temporary loans provide to existing homeowners. Current owners commonly face a situation where offers they make on a new home must necessarily be contingent on the successful sale of their own property. That snag can make an otherwise winning bid less attractive than a lower non-contingent offer. The solution for the current homeowner is a bridge loan—a temporary, high-interest loan (typically 8.5% to 10.5%, according to Housingwire) that provides enough cash to fund a contingency-free offer.
The bridge loan article points to one path Costa Mesa homeowners can choose to solve a timing dilemma—but it also uncovers a real estate reality that should encourage first-timers. This was dealt with directly a few weeks earlier:
- RM’s “Advantages First-Timers Have Over Repeat Buyers” portrayed the same situation from the opposite point of view. Because “anyone in a position to make an offer without a home-sale contingency is going to be better positioned than those who are waiting to free up cash,” first-timers enter the offering arena with that advantage over existing homeowners—at least until the other side arranges for one of those bridge loans (or sells their property). It is also true that first-timers can have access to a number of down payment assistance programs and grants not available to repeat buyers.
Whether you’re a first-timer or a current Costa Mesa homeowner, part of my service is to present the many choices that are available to you as a buyer. Call anytime!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at email@example.com
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