Things are moving!

Well, things are moving in the San Francisco Bay area (also known as Silicon Valley), especially REO's (Bank Owned Proeprties). If you want a deal, you'll have to move fast and many are. It's amaing to me the amount of cash that has recently come out of the woodwork. Most buyers for these types af properties are putting 50% or more down or just flat foregoing financing all together and paying cash. THe competition is getting stiff and the inventories are drying up. With interest rates slowly rising and as the summer months pass us by, mor than that weather is heating up.

A word to the wise...if you want to be ready to catch a good deal, have your ducks lined up in a row ahead of time. Get that pre-approval (OR BETTER YET) approval letter in your hands now, before you go out and shop for properties. Also, make sure your Realtor addresses some special verbiage in your offer that states that the financing contingency will not be lifted until the close of escrow. Due to recent times, lenders are ordering a second appraisals right before the close of escrow. If that second appraisal comes back lower than the sales price, you the buyer will be in breach of contract for specific performance if you fail to make up the differennce in order to close. Now that would really steal the joy that surrounds the purchase of a new home wouldn't it?