What is it worth? Is now the time to buy in Santa Cruz, CA?

We often have questions of value. In real estate that is a subjective question. How much is something worth is in part, in the eyes of the beholder. I have many times discussed Santa Cruz real estate prices with colleagues. These discussions have ranged from past history,what is going on with current offers that are out, and what the media mood seems to be.Currently for the second time in recent times I am in a multiple offer again. Yes folks, in all markets, a select few see things just the same way and all make offers on the same property.

In Capitola there is limited supply, so the discussion is more of how close it is to the village. In Rio Del Mar, it might be whether it has an ocean view or not. So value is a subjective thing based upon supply and demand, media perspective- negative or positive, and location. Another wrinkle that generally has not been an issue in the past. is the lendability of a property.

Lenders have been going bust,many rightly so, in my mind. The old golden rule "he who has the gold makes the rules" was never more evident. In the recent past which created today's lending problems, the lenders basically gave money to anyone who cold fog a mirror. They liked to cast the blame on mortgage brokers. The problem with that argument, is the lenders set the guidelines at which they would lend THEIR MONEY. So the repercussions from their greed is being felt and discussed at boardrooms on Wall Street and at many dinner tables. Now is the time more so than ever to have a mortgage broker help you find a loan. Rates are likely go up. The interest rates are quite favorable right now, but finding the loan program that fits your scenario, and the particular home, is the job for an experienced professional.You can find an experienced one, in Stephanie O'Connor at www.woodwardoconnor.com

The confluence of greed( of the banks) and desperation( of the buyers) made for the perfect storm. Locally the impacts of this is most apparrent in Watsonville, and in the San Lorenzo Valley. We have lots of sub-prime loans that farmworkers took out in Santa Cruz County. They went for the American dream, and maybe in part due to economic slow downs, could not pay their mortgage payments. While they should not have been able to buy a home in the first place with their meager wages, banks handed out loans willy-nilly. The Watsonville area has been hardest hit with these in our wonderful agricultural region.

So while many are having to walk away from their dreams now, there is opportunity for others. If you are looking to buy a foreclosure or short sale home at a discount, the time never has been better. The lending is tougher with a minimun down payment of 10%, and most loans having more favorable terms, requiring 20% down payments.If you are looking for a deal, give me a call or check out my site for a list of some of these great deals.

This is a time of great opportunity for buying a home in Santa Cruz County. Forget the negative media perceptions and move forward I say.Real estate investing and home ownership is a 5-10 year investment period. I am sure if you purchase now and hold for that time period, you will be hansomely rewarded.

We can discuss what is worth when we submit an offer. LIke most all successful ventures, including farming, it starts with preparation. Get you loan and credit situation evaluated, then with that part done we can find you a great deal. I'll explain the process and what you can expect. These are exciting times, have courage and move forth with your dreams for a new home in the Rio Del Mar or Santa Cruz markets.You can reach me at 831-818-7524.

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