In today's market, the First Time Homebuyer can find themselves feeling at a disadvantage with the large number of cash buyer's purchasing homes right now.
The housing market is regaining at a healthy pace, and competition in what is considered a First Time Home in your market can be fierce. In December 2013, cash buyers accounted for 42.1 percent of all residential sales on average nationwide, according to a recent report by Realtytrac.
First Time Homebuyers typically make up approximately 40 percent of home buyers on average. According to the National Association of Realtors, First Time Homebuyers made up 28 percent of the sales in December 2013. This is the lowest since 2008, and here is why...
While the experience of buying a home is very exciting, and every buyer wants the best deal possible, knowing the competition in any business transaction is very important. Remembering that in many markets, nearly half of the other potential buyers looking at the same home you are have cash in hand and can close quickly is key. Taking the time to figure out what you want and what areas you are interested in buying in is crucial. Once you do find the home you want, hearing that your offer wasn't accepted can be very disappointing. Here are a few tips to get a great deal, for a fair price and get the seller's attention:
1. Remember who your competition is in your price range and take that into consideration when formulating an offer with your agent.
2. Heed your Realtor's input on if the home is competitively priced, how long it has been on the market, and if you may be offering too little to get a response.
3. Don't get discouraged, doing your research and working with an agent who is familiar with your market will help you be prepared as you make an offer on the home you love.
Best of luck in your search for your new home!
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