I am working with a couple who wants to buy a house. Not a townhouse or condo. They have two dogs—pretty good sized dogs—and the dogs need room to run around a bit.

Problem is that the amount for which this couple is qualified by a quality lender severely limits their ability to purchase most single family detached homes in the high-priced San Francisco Bay Area where we live. What they qualify for is probably going to be an REO (bank owned house, foreclosure) or short sale property (almost an REO).

With that in mind, I showed them an REO property the other day. It was a new listing. I got it off the MLS one day and we saw it the next. It seemed like a lot of house for the money. Although it was shown as having 3 bedroooms on the MLS, it actually has 4 bedrooms. Also, 3 baths. Living area is a little over 2,300 sq. ft. Good size yard. It has some drawbacks. It is on a busy street, the neighborhood is not the most attractive, the house needs new carpet and paint. The built-in dishwasher had been removed. But, at the price offered, it seemed pretty attractive. At least my clients thought so.

I called the listing agent to let him know of my clients’ interest and gain a little more information that might allow me to write a quality offer, if my clients chose to do so. Too late! The house was already Pending! The agent told me that he listed on day one. Received an offer substantially over the asking price. Sent the offer to the lender/owner and it was accepted. Done deal! Days-On-Market=1! Wow!

So, what does this tell us? Properties that are well priced for what they are will sell…and, perhaps, quickly. Lenders who want to get problem loans off their books often price very aggressively.

If you are waiting for the popular press to tell you that the economy is recovering, the housing market’s vibrancy has returned, and it is again time to buy, do not call me. By the time that happens, it will be too late.

On the other hand, if you understand that inflation may soon drive the cost of a financing up, good properties are still selling and real estate is always a good long-term investment, I would like to help you find the property that works for your.

If you are a first time buyer, investor, move up buyer or just a plain buyer, give me a call and let’s talk about what it will take to get you into the real estate that makes sense to you.