Sometimes it seems that every non-short sale property that hits the market gets snatched up quick!
There are plenty of buyers, they just want deals! The bidding-up of values sometimes gets crazy.
I have a couple with a large family. They're looking to buy their first home. They can easily afford it as the payment is slightly higher than the current rent payment on their lease. They need down payment assistance and closing cost assistance. Doesn't make too strong of a looking buyer even though they will sail through underwriting. Very strong in all regards except the initial investment.
Regardless, a 6% concession is not as strong as a buyer with their own down payment. In all other regards, they are quite equal.
Since they're willing to do some work of their own on a home, they didn't search for the creme-puff, they looked for a home with some minor "problems". Preferably, broken window, peeling paint, broken stove, torn carpet in a room, damaged walls, empty pool, broken fan on A/C (they freeze up out here in AZ if you don't use them regularly.)
Then, we found it!!! Only a couple of major FHA blocking issues: The seller won't fill the pool, buyer must pay to do this for the inspection. Seller won't turn on electricity. Seller will make no repairs.
They did not care about whether or not they had to pay DPA or closing costs... They were smart enough to focus on the net. We worked all the numbers out and my clients' offer was accepted with no counter.
We picked it up LOW! It was priced low because it couldn't pass FHA inspection. Pool was drained and AC/Heater wouldn't kick on. Our target home!
As long as the home wouldn't pass inspection nobody could buy unless items were fixed. Fortunately, this bank specifically stated, "Seller will make no repairs! Buyers wishing to inspect must turn on utilities in their name!" Our perfect home!
For $790.00, Joe Caba of Mr. Kool AC/Heating and Pool came out, fixed the A/C, cleaned and set the pool, inspected the pool equipment and made everything work out.
My clients went after what nobody else thought was possible. They did know one thing was for certain:
Home ownership was always the end result they were focused on, in THEIR minds!
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