• Login
    • Register

The Jacobi Team, Century 21 Select Real Estate, Inc.The Jacobi Team, Century 21 Select Real Estate, Inc.

The Jacobi Team, Century 21 Select Real Estate, Inc.

Emmett Jacobi
Contact us by emailEmmettJacobi@gmail.com
Contact Emmett Today At 530-519-6333
Kim Jacobi
Kim@JacobiTeam.com
Contact Kim Today At 530-518-8453

1101 El Monte Ave Chico, CA 95928

The Jacobi Team Branding Shoot
  • Menu
  • Home
  • Buy
    • Buy
    • Buyer Consultation Sign Up
    • Free Buyer’s Guide
  • Sell
    • Sell
    • Marketing Plan
  • Communities
    • Chico
    • Paradise
    • Durham
    • Oroville
    • Magalia
    • Orland
  • About
  • Contact Us
  • Resource Directory

How to buy a house in 2022

So you want to buy a house in 2022? Let’s look at some of the challenges you may face and then a strategy to overcome those challenges!

Challenges home buyers will face in 2022

1. Not enough choices


Most people have a list of things they want their next home to have. Maybe you want a home that has 4 bedrooms, 2 bathrooms and you want a split floor plan with lots of light and upgraded finishes. And you want the kitchen to be in the back of the house with a window that looks out into the backyard. And you want there to be a wood burning fireplace in the living room. Oh, and a pool in the backyard. So you pull up JacobiTeam.com and search for this house in Chico, CA and you see that there are currently zero for sale with those specifications. If this were 2014 you might see three or four like that in your price range at any given time, and more just like it as the price range goes up. There just aren’t very many homes for sale and it’s been like this now for three years. In fact, active listings have been declining since 2012/2013. And new home builds are way below what they should be to keep up with demand. Click here to see how many homes are for sale right now in Chico, CA.

2. Lots of competition


Let’s say, by some miracle, the exact house you are looking for actually does come on the market for sale! Yay! So you schedule a showing with your Realtor and decide you want to write an offer. You know the market is hot right now, so you offer a little over asking. You are getting a conventional loan and not asking a lot from the sellers. Then your Realtor calls you the next day and says there ended up being 7 offers on the house and your offer did not get chosen because someone came in paying all cash, short escrow, no contingencies. This has been the reality for many buyers trying to buy a home ever since COVID began.

3. High prices and rising interest rates


CA is at an all time high with median home price, and that includes Butte County where my husband and I practice real estate. Buyers have been able, for the most part, to still buy homes because interest rates have been insanely low over the last few years. But they are rising. All indications are that they will go up several times through this year. That means that not only will you be paying the highest ever price for a home, but it will cost you more to buy that home in the long run that it would have last year, when the rates were lower.

So why should I buy a house at all?

1. Renting is throwing your money away


When you rent, you are paying someone else’s mortgage, and furthering their wealth. You CAN still buy and I will tell you how in a minute.

2. Interest rates are still at historic lows


Even though interest rates are set to rise, they are still at historic lows. Over the next few years they may go up even more, so this year’s rates could be considered a good deal.
Freddie Mac Mortgage Rates since 1971

3. Real estate is still one of the best ways to grow wealth


Some people say real estate cycles every 10 years. That is true unless there is a recession or bubble burst. There was the recession in 1990. Home prices had peaked in 1989 and then bottomed out in 1997. Then there was the bubble burst of 2008. Housing prices had peaked in 2006 and bottomed out in 2009. That is seventeen years between peaks (peaked in ’89 and then down and back up to peak in ’06). But that doesn’t mean that if you paid $500,000 for a house in 2006 it took you until 2021 to be able to sell it without being underwater. Accounting for the amount you put as a down payment, and then the years you put in making payments on the loan, your equity probably caught up to you in about 2016. So for you, buying at peak pricing, means in about ten years you could sell it and be in the positive or break even. The more cash you put down, the safer you may feel buying in a peak. Just know that overall, the property will gain in equity in the long run because housing values continue to go above the previous peak and hold over the long term.

How to buy a house in 2022


As promised, here is what we are suggesting for you to get the best experience and meet your goals of buying a home this year:

1. Contact a LOCAL mortgage lender and get pre-qualified


Concerns that a seller has when accepting an offer from a buyer who has to get a loan inlcude, can their lender close the loan? Is this buyer actually able to borrow? Realtors who have been in the business long enough to do a dozen or more escrows begin to see which lenders do a good pre-approving their buyers, communicate quickly, and follow through with what they say their company will do. So the seller’s agent is going to advising their sellers to be looking for buyers with lenders that the agent knows can accomplish these things. That’s why working with a local lender with a proven track record can cause your offer to win over a buyer who submitted an offer but is using an out-of-town lender.

2. Have that lender pre-approve you


To get pre-approved your credit will be pulled, you will provide bank statements, W2, etc. Whatever the lender asks. The lender will be able to ascertain whether or not you will actually qualify for this loan. It’s more than just a conversation- it’s saying that you, the borrower, are 99.999% going to be approved for this loan. This will put you above other buyers making offers who are merely at the pre-qualification stage. All you have to do to get pre-qualified is to talk to the lender on the phone. No paperwork. No credit pulled. Just a conversation.

3. Determine your MUST HAVES and negotiables


Do you NEED a home that has brand new beautiful luxury vinyl plank flooring? Or, can you buy a home that has some other kind of flooring and then have the flooring you want put in before you move in? Being flexible on your needs and wants list will open up more choices of homes for you.

4. Find a Realtor


Find someone who works real estate full-time and gets back to you quickly. In this market you will need to act quickly when a home comes on the market and you want a realtor who is paying attention to you.

5. Focus on your price range or lower


Look at homes that are new on the market that are at or below the top amount you want to pay. If the house has been on the market three weeks or longer then you can look at homes that are a little higher (1%-3%) than you want to pay and may be able to get your price accepted if you make an offer. They are probably about to do a price adjustment anyway.

6. Highest and best


When you write an offer, make it the highest you are willing to pay right out the gate. Don’t mess around or you will most likely get beat out. This market is like a silent auction. Make your bid and hope it’s the best.

7. Other terms can also help you get your offer accepted:


*See how quickly your lender can close an escrow- if they can do it in 21 days then write your escrow for 21 days.
*Explore the private money, or bridge loan, option rather than getting a standard loan. This makes your offer as close to an all cash offer as possible. You need to have equity in your
current home as collateral to be able to have this as an option usually. You would buy your house with the private money loan then after closing refinance into a standard mortgage. Your
realtor will most likely have some private money lenders they can recommend.
*Offer to pay all the closing costs. Closing costs are typically 1% of the purchase price.
*Don’t ask for the seller to pay for any inspections. If you want inspections, pay for them yourself. In the Northern CA area you can get a whole house inspection for about $400, a pest
inspection for about $150, an HVAC inspection for about $100, a roof inspection for about $100, a chimney inspection for about $250 (including a cleaning), a pool inspection for about
$200, and a sewer line camera scope inspection for about $350. Other inspections include septic inspections (which if pumping or digging is needed can run $500-$1000), well inspections
($300-$700 depending on what you get inspected), solar panel inspections (price varies).
*Consider shortening your contingencies or releasing them altogether. There are ramifications to this, so make sure to discuss this in depth with your Realtor.

This article was written by Kim Jacobi, of the Jacobi Team of Century 21 Select Real Estate, Inc in Chico, CA. If you want to search for homes for sale in Chico, click here.

Posted in: Uncategorized Tagged: Century 21, first time home buyer, Homes for sale in Chico, housing crisis, interest rates, low inventory, mortgage rates

Stuck in a Lease and Wish You Could Buy?

Are you renting and stuck in a lease agreement and wish you could buy a house now? Don’t abandon your dream and wait! Interest rates are going to rise in 2022 and you will pay more for the same house if you wait! So here are three things you can do to buy NOW!

Check the fine print

Find your lease or rental contract and look for a section that talks about early termination. See if there are any fees or requirements for terminating the lease early. If the contract doesn’t say, or you don’t have a copy of the contract, then call your property manager or landlord and ask them directly! Some leases call for a fee or require you to pay two or three months rent in order to get out of your contract early. Find out! There may not be a financial penalty.

See if there is a waiting list

Right now, housing is in demand, and not just homes to buy. If you have a property management company managing the rental you live in, they may have a waiting list of people who would jump at the chance to take over your lease! Call and ask. If you deal directly with the landlord ask your landlord if he knows anyone who would want to take over your lease. If he or she does not, then ask for permission to advertise and look for people interested in taking over your lease. Depending on your area, you could advertise for free on Craigslist or Facebook Marketplace, or other online sites.

You won’t have two house payments at the same time

When you buy a house, there is a slight delay on paying your first mortgage payment! Let’s say you get an offer accepted on a home in February. It will take 30 days to close escrow. So then if you close escrow in March you won’t have a mortgage payment on your new house until April, or sometimes even May depending on several factors! We always advise our clients to give their 30 day notice to their landlord once we have passed about the halfway mark in our escrow and we see that everything is looking good to close. Because you won’t have a house payment for another month that gives you plenty of time to stay living in your rental, close escrow on the house you’re buying, and then take your time moving.

If you are currently renting and would love to buy a house before your lease term is up, reach out to us! We can help you!

Written by Kim Jacobi of the Jacobi Team of Century 21 in Chico

Posted in: Uncategorized Tagged: buying a house, Century 21, Century 21 Chico, first time home buyer, Homes for sale in Chico, lease, real estate, rental agreement

Why THIS Winter is a GREAT time to sell your home

In a normal seller’s market there really isn’t any bad time to sell your house. However, Spring in Northern CA, where our real estate market is located, is usually the best time to sell and winter is usually not the best time to sell. Why is that? NORMALLY, buyers get distracted during the holidays and choose to put off buying a house. NORMALLY, buyers don’t like trudging about in the cold and rain to look at houses and want to wait until the weather is nicer. But these aren’t normal times.

How COVID has affected our market


Nationwide, and definitely in our Chico and surrounding area, there are less homes on the market and more buyers than ever. WHY? COVID is one huge reason. The affects of COVID have been felt in more than just the health care, politic and economical arena. It has affected WHERE people want to live. Many people are now able to work from home. Thousands of jobs are now offered to people remotely, whereas before, it wasn’t the case. And these remote jobs are looking like they are here to stay. So more people than ever are asking themselves, where do I want to live? COVID has also got people thinking about where they are in life and where they want to be. Many people have reflected on those two things and have decided to make a change. COVID has affected schools, jobs, where people want to live, and so much more. Now, more than ever, buyers are in abundance.

And how has COVID affected sellers?


Nationwide, the number of homes that are on the market are low because sellers who want to upsize are finding it difficult to do so because they can sell their home quickly but can’t find their replacement home fast enough. Some sellers are keeping their homes off the market due to the pandemic- they don’t want people coming through their house. Some people don’t want to sell because they feel nervous to sell and make a move during perceived volatile and uncertain times. Unemployment rates are extremely high, inflation is up, and politics are crazy.

Why this winter is a good time to sell


There is a vast amount of unsatisfied buyers who want to be in a home of their own and quit renting, or want to be in a different location or closer to family, or want to take advantage of the amazing interest rates before they go up, or the myriad of other reasons people are pressed to buy now. Home buyers are more motivated this winter than in the past. Buyers are very specific about what they want, and turn-key homes that are updated, or have more land than a postage stamp, often see the most offers (in the Chico and surrounding real estate market). Buyers nationwide are still out there in droves, ready, willing, and able to purchase a home, when the right one comes along!

If you’ve been holding off selling…


…then CALL us! We can help strategize with you and help you come up with a plan that works for you. Information and expert advise is key in making a decision like this. Reach out so you can get peace of mind. You can also get a free, instant home valuation without having to talk to us, using a tool we subscribe to called “Homebot”. Your information will NOT be sold or given away, and this is a secure site, so check it out here!

This blog post is written by Kim Jacobi, of the Jacobi Team of Century 21 in Chico, CA. You can reach Kim at Kim@JacobiTeam.com if you have any questions or comments.

Posted in: Uncategorized Tagged: Century 21, Chico, Chico real estate, Northern CA real estate, Realtor in Chico, when is the best time to sell your home

About Us

What does a former Alaskan fisherman and a former music teacher have in common? Real Estate! Emmett and Kim teamed up in 2015 to form The Jacobi Team. Together they bring what one person alone could never do: the best qualities of two people, combined with leveraged time and focus, creating high quality, high success representation for buyers and sellers of real estate. Real Estate is not an easy career, so why do it? “Because we care about people and we love the uniqueness every person, and every property brings. We truly feel joy and satisfaction when we help someone.” -E and K

Our Communities

  • Chico
  • Durham
  • Paradise
  • Magalia
  • Oroville
  • Orland

Featured Blog Post

How to know when this market will shift

February 16, 2022 By KimberlyJacobi

In many parts of the United States, areas are experiencing a seller’s market: low inventory, high prices, lots of buyers= multiple offers. This kind of market is THE best time for a seller to sell. Why? Because home sellers can make the most money from selling, as well as have the most leverage for the […]

Contact Us

Emmett Jacobi, CADRE#01896904
Contact us by emailEmmettJacobi@gmail.com
Contact us by email 530-519-6333

Kim Jacobi, CADRE#01963545
Kim@JacobiTeam.com
Contact us by email 530-518-8453

1101 El Monte Ave Chico, CA 95928

C21 Select Real Estate Logo
© 2023 · Equity Framework
Privacy Policy · Listings Sitemap · Log in