How Many Stinking Offers Do I Have To Make?
Let’s call her Leslie. She’s a first time home buyer pre-approved for a FHA loan with 3.5% down payment and hoping for a little help with closing costs from the seller. Her credit is good. She is a professional with a good job and a bright future. Her price range is $300,000 or less. It sounds doable, right?
So why is she is making offer after offer and not getting a house?
- It’s tough to compete with cash. In her price range there are some good bargains. This is also the price range in which investors are looking. Leslie feels justifiably slighted when the seller counter-offers a cash buyer who made a lower offer than she did. She’s the one that stepped up on the price. Her offer was even the first one written.
- She’s making offers on houses out of her price range – hoping the sellers may be some of the really motivated one’s we’ve heard about. Is that a bad strategy? No, but it’s a long shot to start with, so most won’t work.
- She doesn’t make a quick enough “buy” decision. There are a lot of folks looking for bargains right now. When one comes on the market, there is no time to do research or anything else. We have plenty of time for that after they accept. If you wait until there is another offer, almost anyone with a bigger down payment will take it away from you.
Under $300,000 in Bellingham is very competitive. If you are a low down payment buyer, just expect to stay in the game and keep looking and making offers. Keep your spirits up. Try not to take it personally. If you just keep going, I guarantee it will all work out.