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Buy A Home In This Market....Requires Strategy.

Managing Real Estate Broker with MacNificent Properties, LLC 638538 MD

May 30, 2009 12:11 AM

I know what your thinking... Strategy?? It's not that complicated........right?? On the contrary... it has exactly become that complicated. In our area we are seeing multiple offers on homes. I have a talked to buyers who are just frustrated....they thought it was a buyers market. If you are looking for a home and don't want to write multiple offers that lose....then you need a strategy.

Your price range, in some cases will help determine your strategy... In the lower price ranges, owner occupants are competing with investors, who have cash... If you are an FHA buyer, then that can get tough... Banks who own property, are looking at their bottom line..they want the deal to close with the least number of obstacles... Cash buyers are the most attractive to Banks...they typically will come in under asking, and have no contingencies.

Here is the strategy I am using with my buyer clients...First, we don't look at the top of the price range they can afford....mainly because you can't compete.... if you can afford $200K..then you should be looking at homes at about $175K. Keep in mind in a multiple offer situation 9.999 times out of 10 the price has gone over asking, if you are at the top of your price range, you have no where to go..

Also, take a look at the FHA rehab loans, with these loans, you can compete from a price perspective, and repairs can be financed. This sometimes, can level the playing field with an all cash buyer. Also, one of the most important things to do..when you look at a home, if you can do it with initially with someone who knows about systems in a house...for instance, my brother is an HVAC guy..... but with that expertise, comes an understanding of other systems in a house.... someone like that may be able to give you a mini home inspection on the spot... of course a full home inspection is always suggested... :)