BEAT THE CASH! Primary Residents - Here is how you snatch that deal

Beat The Cash! Primary Residents, here is how Fannie and HUD help you snatch that deal.   

Wonder how YOU can snatch a deal in a competitive market? Buyers trying to buy a home in one of those markets with low inventory know what I’m talking about? Prices are at record lows and finally Buyers are coming from the sidelines. In many locations the number of homes that are for sale has declined to a very low level.

I’m a real estate agent in the City of Maricopa, AZ, located just 25 miles South of Phoenix. Almost all Maricopa homes for sale were built between 2003 and 2007. These homes are beautiful and they are priced so low you wouldn’t believe. Maricopa median price is $85,000. Over the past year, the number of homes for sale in Maricopa, AZ kept going down. Maricopa, AZ inventory is at a record low of about 255 properties. That is about the number of homes sold in Maricopa, AZ in 1 month. 269 homes were sold in June, and 236 in July.

With inventory so low, it has become harder for Buyers with mortgages to snatch one of those great deals in Maricopa, AZ. Many listings in Maricopa receive multiple offers. In response, Sellers request Buyers present their “highest and best offer”. That can be tricky for Buyers in need of financing. If the Buyer offers too much the property will not appraise and the deal falls apart. Appraisers look into the past to determine value in the present. Appraisers look at deals that closed in the past 3 to 6 months. Inventory has come down continually for the past 12 months and competition for properties has increased and created upward pressure on prices.

Furthermore, many of the Buyers of second homes are able to pay cash. Seller usually prefer cash offers over financed ones. Financed deals can fall apart at the last minute and therefore a cash offer is regarded a safer bet. Some Buyers have experienced disappointment after disappointment when their offers were rejected.

Here is where HUD and Fannie Mae come in. They offer a remarkable beneit to primary residents, who will live in the house for more than half of a year. 

Fannie Mae has a first look policy.  The first 15 days of a listing, Fannie Mae only looks at offers from primary residents. Primary residents most commonly need financing and that keeps a lot of these cash offers out of the competition for a property. Make your offer as soon as possible after the listing comes to market but no later than day 12 to be sure it’s forwarded to Fannie Mae before the 15 day period is over. To determine the exact day, check the Homepath website. (The day of mls listing is NOT the one that counts). Find Fannie Mae owned homes by searching Lender Owned properties and look for Owner Fannie Mae. Check out Maricopa Lender Owned homes.

HUD homes offer the most support for primary residents. Many of the HUD homes are offered exclusively to primary residents for the first 30 days. The sales process is a little different. HUD collects bids for the first 10 days. Bids are opened on day 11 and after that daily. No matter if cash or financing, the highest bid gets the house! Check out Maricopa HUD homes.

These two programs from Fannie Mae and HUD really help primary residents beat the cash and snatch a deal. Check out this stunning Maricopa HUD home priced at only $83,000. Click on Virtual Tour (left side menu)