It's no secret that buying or selling a La Jolla home or Rancho Santa Fe hom has gotten more difficult recently. That's largely because of the struggling economy, which led to the foreclosure crisis and the popping of the housing bubble. There have been a lot of changes that have taken place, too, and one of them deals with the appraisals that are done in La Jolla and Rancho Santa Fe area. In areas like La Jolla and Rancho Santa Fe, the high-end real estate market is not immune to lowered appraisal values that are keeping people from buying (and selling) homes.

In order to have a home financed, it has to appraise for at least the amount the buyer wishes to borrow. In many cases, it must appraise for more, because lenders generally only want to offer 80% of the home's value as a mortgage. Some buyers looking to buy La Jolla luxury homes and Rancho Santa Fe luxury homes are having trouble getting financing because the homes they're trying to purchase are notappraising high enough for them to get their financing. Sellers are also struggling, because they can't sell their La Jolla and Rancho Santa Fe homes because they will not appraise for what they're asking - unless the buyer is paying cash and snd finds the value in the property. Cash buyers have become a much larger percentage of sales due to the financing issues we are currently facing. Having lenders that can handle buyers with financing challenges is always the best scenario.

Much of the high-end real estate in La Jolla and Rancho Santa Fe was bought during the housing bubble, so the prices were inflated. La Jolla luxury homes and Racho Santa Fe luxury homes, and California in general, has been particularly hard-hit by the falling prices and mounting foreclosure problems that are still being seen today. It's still a buyer's market, but even some buyers are having trouble purchasing high-end real estate in La Jolla and Rancho Santa Fe. Banks are very cautious now and taking fewer risks. Of course once the market has seen significant signs of recovering many lenders will likley loosen up their guidelines if history is any indication.

Posted by Dennis DeSouza on
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This is what we need - an inishgt to make everyone think

Posted by Gildas on Friday, January 13th, 2012 at 12:08pm

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