By: Legacy International Realty – April 2, 2012
Its a Buyers Market for OC Real Estate Purchasers and Investors
Given todays real estate climate, finding a property in the Orange County CA real estate market can be advantageous, what with many homes selling below market worth. In fact, because of current marketplace conditions, you can look at property in Orange County thats 10% more than that which you can afford and, in turn, make an offer for ten to 20 percent under the sales price. It definitely is a buyers market. So, even if an Orange County property appraisal is set at an amount that you might think is slightly out of your price range, you may be able to swing a deal and obtain a home that is in the above list what youve determined you can afford.
Orange Real Estate – A Prime Real Estate Marketplace
In addition, investing in real estate in Orange County is a great way for the real estate investor to increase his portfolio. Orange County attracts retired people, tourists, and families. So, if you want to create it your goal in order to rent property in Orange County, it certainly is an advisable pursuit. Therefore, once youve found the actual OC real estate you need to purchase, the next step youll have to take is to make an offer about the property.
Look at Real Estate in Orange County that costs 10% More than What you Think you Can Afford
An offer is a contract thats legally binding, and will include the amount you need to pay for the home. Again, this is an opportunity for you to make an offer on a home that is listing at a price that is higher than what youd normally pick in a sellers market. Therefore, offering ten to fifteen percent less for a house priced a little bit out your range may give you the opportunity to own a home that you wouldnt have the ability to buy if market problems were better.
The offer will also outline the amount of time for the real estate purchase, which will include a house inspection and an approval from the bank. Youll need to create a payment of earnest cash too. Earnest money is the great faith deposit that you make toward the actual estate purchase, which shows your earnestness towards buying the house. If the deal goes through then, the earnest money deposit is going to be applied to the sales price and closing costs.
How Much Earnest Money is usually Applied toward the Down payment?
Usually, the amount that is deposited is around $1, 000. If you are really interested in buying a property in Orange County though, its generally not smart to offer any more than two percent of the real estate purchase cost as once an contract is reached, the money is held in a trust or escrow accounts. In a buyers market though, making a more sizable good faith deposit may convince a buyer to simply accept an offer for a lower purchase price – a good way for a buyer to seize a home that might be too much for him to pay for otherwise.
What Happens to the Earnest Money should you Change your Mind?
So, what happens to that earnest deposit if the OC real estate offer falls through? Well, if you are a buyer and believe that youll automatically get the entire amount back, thats not quite accurate. When the earnest deposit is held in a trust account, it no longer is the buyers money but is the sellers money too. So, after the cancellation fees are removed from the deposited amount, the buyer and seller must agree with the disposition of funds. While the money is usually just returned if the customer changes his mind early along the way, some disagreements may occur if the real estate buy does not go thorough after a longer period of time.
What Occurs after the buyer and Seller Agree towards the Terms of the Offer?
That being said, after the offer is created and the earnest cash is deposited, the seller can decide to accept or decline the actual offer. In some instances, he may decide to make a counteroffer. If an agreement is reached, then a home inspection will be made and appraisal will follow. Afterwards, both parties will sign a Purchase and Sale Agreement.
Once the bank provides its approval on the quantity of the loan and you are able to provide proof that youve obtained homeowners insurance to be able to secure financing, youll be able in order to close on your Orange real estate property. At that time, the mortgage paperwork will be signed and the transfer from the OC real estate will occur.
Contact Legacy International Realty for Assistance in Buying Orange County CA Real Estate
Obtain further details concerning the home buying process whenever you conduct a houses for Orange County real estate search online, or contact Legacy Realty about buying or investing in Orange real estate.
Author: HochhalterWater316This author has published 13 articles so far.