FHA financing is an interesting thing. On one hand, it opens up the housing market and bigger, better homes to those who might not have been able to buy something otherwise. Buyers who choose to
Whats The Hardest Kind Of House To Buy Right Now
In a competitive market like the one buyers are facing today in the greater Twin Cities area, there aren’t a lot of houses that are “easy” to get. That being said, some sectors of the market are more competitive than others, and getting houses in these kind of categories requires an ultra-strategic approach.So what’s the hardest kind of house to buy?Anything that’s priced at $250,000 - $300,000.Why?Simple: low supply coupled with massive demand!Millenials are looking for houses in this price range and are snatching up any that seem to be a fit. They’re typically searching for starter homes, and this budget provides the perfect starting point for many.In most cases, this competitive demand doesn’t just lead to quick sales - it’s the cause for homeowners to receive multiple offers on their properties.How to Have the Winning Offer on a Home
#1 - Get the Price Right
Here’s the reality that no one can avoid - sellers make their decision based primarily on an offering price. In many cases, the highest bidder wins.If you’re serious about having the winning bid for a home in the most competitive pricepoint, you’ll have to be prepared to place a strong offer. We’re not seeing a low of lowball offers go anywhere at this time.Don’t just offer up way more than a home could ever be worth, though. Instead, work with a realtor that understands the market and what a home’s actual value is. Then you’ll be positioned to make an offer that’s strong, but also sensible in terms of a home’s actual value.
#2 - Work with Other Terms
In a market where there are often several strong offers to pick from, you can set yourself up to win by making use of other offer terms that matter to sellers. With earnest money, for instance, you have the opportunity to prove yourself as a strong buyer by offering a lot of it or by electing to make any earnest money you put down non-refundable.This lets sellers know how serious you are about their property and about getting a deal done and closed.If the seller is looking at a specific time that they want to move out, you can also get ahead by working with them on the close date. In some cases, this element may be important enough to them that it can sway the competition in your favor. It all depends on the seller.Besides working with earnest money and closing dates, the best advice is to be flexible. The more accomodating you can be to the sellers’ needs, the more inclined they’ll be to take your offer.
#3 - Create an Emotional Attachment with the Sellers
If you’ve never purchased a home before, it may surprise you to learn that many offers are accompanied with a letter from the potential buyer to the seller. These letters are written to make an emotional attachment between buyers and sellers so that the sellers feel inclined to choose a specific buyer.These letters typically contain photos, things the buyer’s loved about the home and neighborhood, and compliments for the homeowner.The best of these letters are very heartfelt and really do make an impact on some sellers.
The best way to get an offer accepted is by using a strategic approach throughout the entire process. You’ll set yourself up with a big advantage if you choose to work with a veteran realtor that understands the makings of a great offer. For a consultation, please feel free to reach out to me here on my site.
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If you're planning to sell your home, you should know that the realtor you choose can have a great impact on how the process goes. Rookie realtors and others that are less experienced are prone to