ARMLS Stat Plus for Q3 2011 (Link to data)
According to ARMLS newly released Stat Plus for Q3 (see link above), homes under $100K is now down below a 2-month supply. This means would-be investors, first-time buyers and snowbirds alike are all clamoring for a piece of the action, resulting in insane bidding wars with just days on the market and frustration across the board.
Serious buyers looking to find a home on a timeline will have to get their ducks in a row (cash buyers too).
Successful buyers using financing will have the following:
Completed Prequal letters from lenders (make sure they are not expired!
Money available for an earnest deposit
Documented source of down payment/gift funds
Cash Buyers will need proof of purchase funds for the full purchase price on a recent (within 30 days) statement; a letter from your financial institution may not cut it anymore.
Be prepared for terms on lender-owned properties like:
Switching from FHA to Homepath (Fannie Mae homes)
Bigger earnest deposits ($1000 may not do it anymore)
I’m even hearing some sellers are asking buyers to (hold your breath) waive appraisals. What year is this?!
My suggestion for buyers who intend to live in the home, consider homes that need work and get a renovation mortgage. A few are:
FHA 203K Streamline
Fannie Mae Renovation
Fannie Mae Homestyles
When you can’t get (or afford) homes that are perfect and turn-key, consider finding a home and financing the repairs into the purchase/loan amount. That dump in the great area you like, might start to look like a better option if you can fix it and not have to dig to find the money to do it from your savings. Since rates are low, the cost to financing the purchase AND the repairs is relatively affordable. The key is to find a good lender. I can help with that- all you need to do is ask me.
Happy House Hunting!!