2020 Bakersfield Real Estate Forecast

Each new year typically brings with it a feeling of possibility as the calendar resets and we begin to plan for another year. Maybe it’s just us, but 2020 feels especially hopeful and positive. We’re seeing it in the clients we’re partnering with as families grow, change and begin a new chapter.

We’re welcoming in the new year with an encouraging overview of Bakersfield real estate. Whether you’re ready to become a first time homeowner, looking for a new home, or maybe you’re ready to sell your home, the Bakersfield real estate climate is ripe with opportunity.

The perks that Bakersfield has to offer haven’t changed. Unless you count lower mortgage rates, because in that case we have even more to offer. It’s a great place to own property, start a new business and connect with community.

We’re going over the details of 2020 Bakersfield real estate for both buyers and sellers, what to expect and how to take advantage of the current market for any stage you’re in.

First Time Homeowners & Repeat Buyers

This is a great time to be a homeowner in Bakersfield. Mortgage rates are low which makes owning a home even more affordable, and there are programs available that offer zero down for individuals that qualify.

Inventory is a bit tight, so you’ll want to work with a local real estate agent that knows your wants and needs, is diligent in their search and helps you submit a strong offer.

Low Mortgage Rates & Zero Down Loans

Today’s mortgage rates in California are as low as 3.5% and the forecast is expecting mortgage rates to stay low, even for those with credit scores that have room for improvement.

If you’re looking for help with a down payment, there are loan programs that offer 100% financing such as USDA loans, VA loans, loans for educators, etc.

There are other loans that require as little as 3% or 3.5% down such as a FHA loan and the Conventional 97 loan.

Each loan type has it’s own set of qualifications and you would need to prequalify for these loans like you would any other.

If you’re curious about a zero down home loan, give us a call or email and we’ll help you take the next step.

Bakersfield Real Estate Inventory

Because Bakersfield inventory is low, we’re seeing multiple offers on homes. This means that there’s a bit more competition for buyers and you’ll need a real estate agent that can guide you in making the best offer possible.

Be Ready to Place an Offer

You’ll need to be pre approved for a home loan before you can submit an offer. Being pre approved ahead of time will also prevent you from waiting days to submit an offer when you find the perfect home. If not, the house could be gone in the time it takes to be pre approved.

Another thing to consider is a multiple offer situation. With low inventory, there will most likely be other potential buyers placing offers.

In this case, the listing agent will look over all of the offers with the sellers. They’ll compare the type of loan, how strong the numbers are, who the lender is (a local lender is important), whether or not the buyer is asking for help with closing costs, and more.

All of these things will be taken into account so it’s important to place your best foot forward.

Have these in you back pocket:

Pre approval letter from your lender - typically good for about 90 days.
Down Payment - If you end up needing to provide one.
Closing costs - It’s common for the first time homebuyer to ask the seller to help with closing costs, although in a multiple offer situation the seller doesn’t usually have incentive to help.
Inspection costs - when escrow opens, the buyer is responsible for paying for the appraisal fee, termite inspection, pool inspection, general home inspection, etc.
Be prepared to pay for taxes and insurances.

If you’re not sure how to start the pre approval process, give us a call or email and we’ll guide you through it.

New Construction

New construction can offer some relief from low inventory pains. However, most people aren’t aware that new construction companies require a real estate agent to go with them the first time to provide representation.

This means that if you go to view new construction homes without your real estate agent present, and you sign anything from the construction company, you could be forfeiting your right to representation if you decide to buy a home from them.

Be careful not to sign anything or fill out any forms in person or even online. You reserve the right to take your time and browse without having to sign anything until your real estate agent is available to view new construction homes with you. It’s helpful to let them know you are working with a Realtor, and you’re just window shopping for the moment.

When buying new construction, you’ll still need your own representation.

Listing Your Bakersfield Home to Sell

The first quarter of the year is one of the best times to list your home because people are ready for their next adventure and new chapter in life.

The Bakersfield real estate market is especially great for sellers in 2020 because inventory is low and it’s a multiple offer market.

If you’re thinking of listing your home to sell, have us out to visit first so that you don’t do more work than you need to to get your home ready to sell.

Take a look at our blog, Preparing Your Bakersfield Home to Sell, and give us a call to set an appointment.

Conclusion

This year has been off to a great start and this is just the beginning. If you’ve been dreaming of becoming a home owner, this just might be the year to make the leap and take advantage of low mortgage rates.

Whether you’re ready to buy or sell, the Glentzer Group is here to partner with you.

We’re with you for your next adventure.

- Katy & John

Resources: Forbes