First Time Home Buyers with a Lower Budget Struggling to Find a Home
You might have heard your friend Mr. Buyer say “my realtor can’t find me a home” or “every time we put in an offer on a house, someone out-bids us” or “I’m so frustrated, there’s nothing on the market” or maybe you’ve heard this one… “by the time I call my agent to let her know the house I want to see, it is already “UNDER CONTRACT”. It’s true! There is so little inventory and so much competition for existing homes, the buyer search is pretty frustrating, for both agent and buyer alike.
Low Income First Time Home Buyers
Low income first time home buyers have it the worse. It is almost impossible to find a home in their budget. If you are a first time home buyer in the Atlanta Area Market, apart from the low inventory you are competing with investors. Several large investor groups have been purchasing homes in the lower price points (any where from $50,000 to $110,000, sometimes even higher) and you guessed it…there pockets are large and they are paying CASH $$$.
What is a First Time Home Buyer to Do?
Well…my recommendation would be what your great grandparents did, save up a good down payment! If your credit isn’t great, you may want to consider working with a lender who can help you repair and improve your credit. The goal is to look great in the eyes of the seller, at least as best as you can. When you are competing with a cash buyer, of course cash is more appealing to the seller. Not only is it more appealing, but closing can be as quick as 7 days as apposed to 30 days or more. And one more advice from your great grandparents “Be Patient”, this could take some time.
Some First Time Home Buyers are turning to New Construction
After several times out looking at houses and several offers on HUD properties without any success, one of my buyers finally gave up and decided to purchase new construction. At the beginning of our search, my young couple wanted to move from their apartment ASAP! Well…here is were some patience paid off. Once we did find a neighborhood that was building homes in the lower price point, many of the finished homes were…you guessed it “ALREADY UNDER CONTRACT”. My buyers had to wait about 5 months before their home could be built. Because of their tiring experience of trying to find a home and coming up short, they welcomed the wait. Of course, let’s not forget two important elements to all of this home buying, they saved up more for their down payment and used the builder recommended lender to take advantage of seller paid closing costs. I completed the first walk-through with these buyers just last week and we will be closing on their brand new home in about 1 week. They are so excited.
If you have been searching online for a home and not able to find what you are looking for, here are a few tips:
1. Save up a bigger down payment
2. Take care of any credit issues
3. Be more flexible about where you want to live
4. Be patient with your agent and yourself
5. Consider new construction (if available)
If you are having a difficult time finding a home, don’t give up but be prepared that your search may take you longer than you expected. Hang in there! My guess is…these investors will start to let up and more new construction will become available.
If you have any questions about the Home Buying Process, don’t hesitate to call me at 866-465-2736.