purchase | 1st Time Home Buyer ATL

4 Tips for Competing With Cash Buyers

You can compete with all-cash offers. Here’s how.

In today’s hot market, bidding wars have become the norm. With many out-of-state buyers and property investors looking for a great deal, all-cash offers are also becoming common.

A cash offer can seem tempting for sellers since it offers the possibility of a faster closing. But despite this perk, cash buyers don’t always win. Many times, they make low offers or demand costly extras, both of which will mean lost cash for the seller.

Want to boost your chances of getting the home you want when competing with cash buyers? Here are some things to consider:

1. Include a preapproval letter. Get your financial documents in order, find a mortgage lender and get preapproved. Additionally, a note from your lender stating that you’re a well-qualified buyer can go a long way.

2. Work with a fast-moving lender. Average closing times vary significantly from lender to lender. Choosing one known for fast transactions shows sellers that you’re willing to move at their pace. Get in touch if you’d like a referral to a trusted lender.

3. Offer more earnest money or a bigger down payment. More money down means you’re serious about purchasing their home, which gives sellers more confidence in your offer.

4. Make an appropriate offer. We’ll discuss local comps to assess the home’s value, allowing you to make a solid bid right off the bat. Low offers are likely to be dismissed without a second glance.

Are you planning to purchase a new home soon? Get in touch today to discuss the right strategy for your home search.

Your GaPeach & YellowJacket Atlanta Realtor, Your referral is the greatest compliment.

Can you own your dream house with student debt?

Did you know you can buy your dream home while paying off student loan debt?

It’s true and even quite common. While student loans are factored into your debt-to-income ratio, they shouldn’t prevent you from becoming a homeowner.

And fortunately, there are many programs and options available to prospective buyers, some you may not be familiar with. Here are four ways people with student loans achieve their homeownership goals:

1. Co-buying With Friends or Family
Purchasing a home with a roommate, significant other or sibling allows you to combine multiple incomes to qualify for a better mortgage rate. This can help lower your monthly payment and make home maintenance more affordable.

2. Receiving Financial Gifts From Family
You can also accept gift money from your parents, grandparents or other family members to put toward your home purchase. Some loan programs have a cap on how much gift money can be used, so make sure you know the limits first.

3. Choosing Low (or No) Down Payment Loans
There are many low down payment options, including FHA, HomeReady and Home Possible loans. For loans with no down payment, VA loans may be available to veterans and military members as well as USDA loans for those purchasing in rural areas.

4. Using Assistance Programs
Down payment assistance programs can cover some or all of your down payment costs if you qualify. These programs vary by location, so talk with a lender to learn about potential options.

Working on your credit can also help you buy a home. Pay your credit card bills on time every month, aim to pay down your debts and never let an account go into collections. It also helps to get preapproved for a mortgage so you know how much you qualify for.

If you’re ready to make homeownership a reality or would like a referral to a trusted lender, get in touch today.

Should you skip the starter house?

Gone are the days when a three-bedroom, two-bath starter home was the norm for first-time homebuyers. Today, many buyers are skipping that stage altogether and going straight for their dream homes. They’re buying bigger, more expensive properties with upgraded features, and they plan to live there for the long haul.

Not sure which type of property you should look for? Here are a few things to consider:

Why are you buying?
Are you mainly looking for a way to lower your monthly living expenses, or do you want a place to raise your kids and put down roots? Do you want this to be your only purchase, or are you willing to go through the process again in a few years?

What’s your budget?
Can you buy your dream home with what you can currently afford, or would that stretch your budget too far? It’s crucial to consider how much you’ll need to save for a down payment and how large of a loan you can qualify for. Your credit score and the expected interest rate will also play a factor.

How long do you plan to stay?
Do you plan to be in the area for a long time or is there a chance you’ll need to move for your career, family or another reason down the line?

Is the market favorable?
What is the current housing inventory, and will you be competing with other buyers? Favorable market conditions mean you’ll get more house for your money, making it an ideal time to purchase a forever home.

Get in touch today if you’re ready to buy a new home. If you’re unsure about a starter home or forever home for your family, we can discuss what options are available to meet your needs and long-term goals.

Fixer-upper or move-in ready home?

Shows like HGTV’s “Fixer Upper” have popularized the idea of buying and renovating the worst house on the best block. Homes that need major remodeling, however, aren’t for everyone. Sometimes a move-in ready house is a better option. Whether you’re a first-time homebuyer or a seasoned investor, it’s important to understand the pros and cons of each.

Pros of Fixer-Uppers

Lower price – Homes that require some updating tend to be priced lower, and many renovations can quickly add value to your home.
Creative control – When you’re the one in charge of updating your home, you can customize it however you choose.

Cons of Fixer-Uppers

Delayed move-in – The planning and work involved to fix it up can significantly delay your move-in date.
Unexpected costs – No matter how well you plan, major renovations are always subject to unforeseen expenses.

Pros of Move-In Ready

Quick move-in – Can’t wait to begin nesting? With a finished home, you can start moving in as soon as you get your keys.

Energy-efficient technology – New and renovated homes are often outfitted with the latest energy-efficient options when it comes to kitchen appliances and heating and cooling systems, which can save your money over time.

Cons of Move-In Ready

More expensive – To recoup the costs of updating, sellers often price move-in ready homes much higher. These homes also don’t allow for easy customization.
Questionable quality – When you’re not there to oversee the update process, you’re unable to ensure that high-quality work and materials are used for your home.

Generation Rent is Ready for Home Ownership!

Millenials ready to purchase Millennials are ready to purchase homes finally; after 10 years of declining numbers according to a University of Southern California study. This is fantastic news for the housing market and fantastic news for millennials as they shift from renting to owning. A certain shift from 2014 when Pew research reported that for the first time in 130 years, individuals between the ages of 25-44 were more likely to be living with their parents vs. owning a home.

One of the stunning statistics I came across reading a Bank of America study was total lack of understanding of what is actually available to millennials; their perceptions of what it took to own a home was incredible; here’s what it showed:

-30% of millennials believed they need 20% down to get a mortgage

-31% believed they needed 10% down

-Only 5% believed they needed 5%

-6% were simply unsure

That represents 72% of all millennials! Yet most millennials that do in fact obtain a mortgage pay around 3%!

Until recent times, the factors that contributed to both the realities as well as poor perceptions of one’s ability to own a home were:

Increase in Debt
Unemployment rate
Increase in rental costs leading to decrease in ability to save for a down payment
Credit requirements after the mortgage meltdown
Lower inventory of starter homes
Getting married later- lack of dual incomes to go on mortgage

As I wrote in a prior blog, times are changing for the good. It’s amazing what a positive outlook does for politicians, investors/Wallstreet, business owners and of course, the stock market. Low down and no down payment mortgages are truly helping millennials obtain their goals

My advice to the millennials is simple: roll up your sleeves, get with someone that truly knows what they are talking about and define your point “A”. Meaning, if you want to own a home, don’t be embarrassed about anything: what your bank account says, what your credit score is or what limitations you think you might have. It’s important to get it all out on paper; some may find themselves in their own home right away, some very soon and for the rest, they are left with a clear path to point “B”, an exact game plan.

Next week I will reviewing interest rates and inventory; thanks for reading!

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4 Tips for Competing With Cash Buyers

Can you own your dream house with student debt?

Should you skip the starter house?

Fixer-upper or move-in ready home?

Generation Rent is Ready for Home Ownership!

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