Buying a Property in Mission Viejo Today Takes More Skill Than Monopoly

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Buying a Property in Mission Viejo Today Takes More Skill Than Monopoly

Buying a Property in Mission Viejo Today is Nothing Like Monopoly!

You remember Monopoly, right?  Take your turn, in order,  land on a property and then buy it with the colorful money the banker gave you with no questions asked.  The price is right there on the card.  Mediterranean Avenue is still $60 and Boardwalk is $400 exactly the same price they were in 1950. Then build a hotel.  And it’s so simple.

Well it doesn’t work that way when you really want to buy a property in Mission Viejo or other great Orange County neighborhoods like Rancho Santa Margarita and Laguna Niguel.  The price to buy the Mission Viejo property is not always what’s printed on the listing; there are terms that muddy the waters; and most people looking for property in Mission Viejo don’t have that huge hunk of cash the Monopoly game rules give out to all of the players – so everyone s most certainly on the same level playing field when it comes to financial qualifications.  Today, it’s all about the terms.  Here’s what that means to today’s buyers looking for property in Mission Viejo.  And these are most certainly in order of importance.

Term Number One – Purchase Price

In today’s Mission Viejo home buying market, you have to figure out how the asking price on the Mission Viejo home compares to the current market value.  Is it priced below market to purposefully incite a bidding way?  Is it priced above market to attract discerning buyers who prefer to do the negotiation dance? Is it entirely realistic and just waiting for you to complete your paperwork?

If you have VA or FHA financing and need to get some money from the seller to help you with the cash out-of-pocket, you need to figure out how the cash back you need impacts the seller’s net and build that into your offer.  Meaning, you need to add more on to your offer and build the extra money into your loan instead of taking it from the seller’s pocket.

Term Number Two – Down Payment

The fat cat in town among the buyers who need to get a loan to purchase a home is the 20% down payment buyer.  This is the top dog of the conventional buyers and the strongest position you can take.  Any larger down payment is gravy, so go for it if you are able.

Term Number Three – Financing Instrument

The tragedy here is that our Veterans, those brave souls who protect our freedom, are the weakest of offers in a Seller’s Market, as they cannot pay for any of the closing costs and therefore need to build that into their offer.  So – in an already creeping up price world, the VA buyer needs to add-on the closing costs to their offer.  And the weakening point is that they cannot make up any difference between the offer price and the appraised value – if the appraised value comes in lower, the VA buyer is SOL.  Which stands for Sorrowfully Out of Luck.

The uncontested winner in the financing department is the CASH buyer.  No worry about the appraisal – there’s no bank involved.  With cash, you get the keys to the kingdom.  But beware.  Cash is king up to a point.  If a seller can get more money from a buyer with proven qualifications from a solid financed deal – the winner will almost always be the buyer who is most likely to perform AND put the most cash into the sellers’ hands.  That’s the bottom line.

The bottom line – net price to the seller is good, no appraisal contingency is better, and cash is best.  More than you can print on the Monopoly card you get when you pay $400 cash for Boardwalk.

I’m Leslie Eskildsen – the Realtor who tells it like it is.

Your success starts with a phone call.  949-678-3373

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