El Dorado, Sacramento and Placer County Real Estate

Ask Kathy

Question: I submitted an offer on one of your properties but haven’t heard back yet, what is the normal turnaround time to hear back from the banks on our offer?

A: All of our clients have different time tables. Our experience has been that the normal turnaround for us to receive a response is between 2-5 days. Depending on how long the property has been on the market, and if there are other offers on the property you may get responses sooner than that or in some cases it may take longer if the bank is holding off to let everyone get their offers in. However your agent will get regular communication from my office of any activity and what the status of your offer is.

Answered by: Kathy Teresi

Question: What happens if the appraised value on a purchase comes in under the contract price?

This is very common in our present market. Due to declining values around the Sacramento County, values have come in low on purchase transactions. The lender will only lend on the PURCHASE PRICE or the APPRAISED VALUE–whichever is the lowest of the two. If the value comes in low, then the borrower has the option of coming in with difference or RE-NEGOTIATE with the seller on a NEW REDUCED price.

Answered by:
Dennis Peloquin
Stanford Mortgage
4062 Flying C Road, Ste. 47
Cameron Park, CA 95682
Phone: (530) 672-7895 

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Why do I need a Real Estate Agent to Submit an offer?`

Our banks require that all parties are represented by a licensed real estate agent in order to protect them and the buyer. Licensed agents can guide their clients through the process, paperwork and legal aspects of the transaction. They are also the only ones who can gain access to the homes to view the property to show you what you are buying.

Answered by: Kathy Teresi

How much under/over list price should we be putting in our initial offer?

A good Real Estate Agent should be able to give you an idea of what the other homes in the area are going for, and also be able to make a general guess as to how much the home might appraise for. Never submit a high offer to a bank hoping that once you get accepted if the house doesn’t appraise the bank will give you a price reduction, it’s very likely the bank will expect you to come up with the money despite your loan restrictions.  Likewise, if you send in a low offer hoping the bank will counter you back to start offer/counter offer process you run the risk of the bank just rejecting the offer and moving on not giving you a chance to negotiate.

Answered by: Kathy Teresi