3 Ways to buy homes cheap in Silicon Valley

3 ways to buy homes cheap in Silicon Valley

1. Look for homes on market 30 days or more 
2. Talk to the agent and find out what sellers needs 
3. Negotiate rate buy down with seller paying

In a shifting market place, there are opportunities for buyers to get deals on homes 🏡 to maximize their purchase and also try to offset the cost of ⬆️ higher mortgage rates.  The fierce competition for every home is over, so you can take a little time to choose the home that you really like.  

If you review history, great deals are made during shifting markets like now.  When buyers are able to negotiate and get great prices or otherwise structure, to make the deal workable for them to get in and start to build equity ASAP.  Because in a land scare place like the Bay Area, equity appreciation is simply a fact of life.  Everyone gets equity appreciation in the long term.  

Who do you know that lost money on their home in the long run?  Your parents, grandparents?  But how many people do you know who keep chasing the market, waiting for prices to fall, but have essentially been priced out?  How many of them wish they could have gotten in 2, 3 or 5 years ago?  Don’t have regrets like them.  It’s a home, you will live there.  But it will also passively make money for you.  What more can you ask for?   

If you are planning to live in your next home for more than 5 years, then this whole concern about recession and rising rates are really a non-issue.  In the past 100 years, the average recession lasted only 15 months. Your mortgage rate may be high for 15 months or so, but the rates will come down, so refinance when they fall.  In the meanwhile, you would have built equity to more than offset the higher rate you paid for those months.  Yet, you would not have been in a bidding war, so would not have over-paid for the home.   

Once the rates start to fall, the competition and over-bidding will also return.  Then you will be wishing you would have made the move when there was little competition like now and more inventory from which to choose.  

It’s all in the mindset and understanding how things have been in the past and will be going forth.  

Choose to take action rather than sit on the sideline choosing to do nothing.  Choosing to do nothing has consequences.  

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