I keep hearing, “buy a house in this market, it’s a buyer’s market,” yet as a new home buyer, I cannot find a home. Investors keep outbidding me or bidding cash prices that are lower, but the bank accepts the cash over my new home buyer mortgage.
While it is a buyer’s market because the amount of inventory available to the amount selling is out of balance, the great houses are selling. The great houses are those priced right and that show well.
Bank-owned houses typically sell in an abbreviated market time as compared to privately-owned homes, and therefore, they come on the market priced below market value. These homes will sell quickly, so do not waste time offering signficantly lower than the asking price. The bank already knows it is priced below market value. Savvy investors may be beating you out on these deals because they recognize the value and act right away.
You can compete with them if you are ready to act quickly too. Get your pre-qualification letter ready so it can be submitted with your offer. Hire a great buyer’s agent who is actively searching for houses fitting your critieria, and have a system in place to notify you the moment a home becomes available which meets your criteria.
Don’t “junk” up an offer with multiple contigencies either. Banks and homeowners selling both like to see the highest and best offers from potential qualified buyers. It is a great time to buy, and with the new homebuyer tax credit available, more buyers are entering the market. Following these tips should help you stand out and find your dream home quicker.
Sonya Loose specializes in residential real estate at Red Carpet Real Estate in Gladwin/Clare County, MI with expertise in vacation homes, investment properties, foreclosure sales, effective and extensive internet marketing and competitive pricing.
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