Many first time home buyers have read online, heard from a friend or seen it on the news. “The market is slow, homes are not selling” Although it is true, that the market is a bit slow and not as hot as it was a few years ago, the problem is the lenders/banks are taking a bit longer to close on loans, its not because the market is just slow.
First time home buyers need to realize that the lower priced homes are the ones with the most competition right now. Everyone is looking for a great deal and most first time buyers can not afford the higher priced homes.
Due to this demand, the lower priced homes are being in dated with multiple offers, with some as high as 20% above listing price. We recently put in an offer on a Riverside home which had been on the market for only 8 days, and came to find out the property had already 9 offers on the table making ours the 10th. After speaking with the listing agent, I was informed that we would have to give our highest and best. After a bit more digging and questions, I came to find out that our offer would have to be well above listing price.
So if you’re a first time buyer and are looking for that great deal, be prepared for a journey into home ownership. There are great deals, weather it’s a short sale, bank owned or even owner owned, just be prepared that it may take a bit longer then anticipated.
