The market certainly is heating up. Properly priced houses in good condition are selling in days, and inventory remains low, creating a sellers advantage and many properties are getting multiple bidders. In these situations, it is often hard to compete with investors and other cash buyers. You need to be proactive when markets turn to the seller’s favor. Rich and Steve were in the studio talking about a deal Rich had that Steve was helping him with. The property had a disclosed structural defect, but the party with the higher bid lost to the lower bid on the terms. Certain types of loans, like FHA and VA loans require the home to be in good condition, if the home needs a new roof, you can’t use these government backed loan programs. Rich and Steve strategized and thought that a 203K rehab loan was the way to go, but the seller was wary of the financing and went with the seller seeking a conventional mortgage, even though that bid was lower. This week’s Real Estate Insight: Steve strongly advises people to check their credit report, not with one of those online websites that are trying to sell you credit fraud services, but with a legitimate lender. Do your due diligence and make sure there are no errors, if you have credit cards with high limits and can pay them down, do so. It is often too late to do anything about your credit score when you are under the gun in a multiple bid, but Homestar Mortgage has a program called Rapid Update that if you do fix errors or pay down high balances, they can guarantee a higher score within 72 hours.Coming to Terms with Multiple Bids
- By Michael McCann
- Posted
The market certainly is heating up. Properly priced houses in good condition are selling in days, and inventory remains low, creating a sellers advantage and many properties are getting multiple bidders. In these situations, it is often hard to compete with investors and other cash buyers. You need to be proactive when markets turn to the seller’s favor. Rich and Steve were in the studio talking about a deal Rich had that Steve was helping him with. The property had a disclosed structural defect, but the party with the higher bid lost to the lower bid on the terms. Certain types of loans, like FHA and VA loans require the home to be in good condition, if the home needs a new roof, you can’t use these government backed loan programs. Rich and Steve strategized and thought that a 203K rehab loan was the way to go, but the seller was wary of the financing and went with the seller seeking a conventional mortgage, even though that bid was lower. This week’s Real Estate Insight: Steve strongly advises people to check their credit report, not with one of those online websites that are trying to sell you credit fraud services, but with a legitimate lender. Do your due diligence and make sure there are no errors, if you have credit cards with high limits and can pay them down, do so. It is often too late to do anything about your credit score when you are under the gun in a multiple bid, but Homestar Mortgage has a program called Rapid Update that if you do fix errors or pay down high balances, they can guarantee a higher score within 72 hours.
