NewHomeIdaho.com Real Estate Blog

Frustrated Buyers

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The excitement of buying a home can be a pivotal moment.  The decision was made...it's time to move! You've gone throught the process of getting pre qualified.  Seemingly mountains of documents that your lender has asked for, to finally be ready to make an offer on your dream property. You have seen properties come and go. Your Realtor said you must be pre qualified first before you could make any offers.  She also said you needed to have your house on the market and it MUST be pending for you to make an offer.  Done, done and done!  You are READY!

You look at the few homes on the market and finally find "the one".  It is perfect, you make that big decision to make an offer.  You think it's a pretty great offer. You even included a picture and a nice letter for extra persuasion.  The escalastion clause your Realtor suggested was brilliant.  You think it is fool proof...the houe is pretty much yours in your mind.  

Then you get that call...you lost the house to a all cash offer. Or a buyer that outbid you. How can this happen? There is nothing else on the market that you even liked! The rage builds. The injustice! You sleep on it and realize, these things happen.  Then it happens again and again. Before you finally won the bid on "the one" house, you are exhausted and frustrated. 

This is a typical scenario for buyers in the Treasure Valley right now. The inventory is steadily decresing. Buyers are becoming ftrustrated with the quality of homes available and the emotional roller coaster of putting multiple offers in on houses before winning the bid. So what can we do as buyers, sellers and Realtors to ease the frustration. In addition to being pre qualified and having your home pending or sold, I have three suggestions. If these don't satisfy you...let's talk...

BUYER AND SELLER MARKET?

Spring buying season starts the day after Christmas in Boise, Idaho.  Going into 2018 is proving to be an exciting time to buy and sell!  How can that be you ask?  Let me explain.

If you plan to finance the purchase of your new home you may be interested to know a few things. With interest rates still historicall low, buying a home with rates under 5% means you can buy more house with your money.  When rates go up, that means your ability to buy a higher priced home goes down.  To get mathmatical on you, as an example at a 4.5% FHA loan with a minimum of $7,000 down for a $200,000 home, your payment (principal, interest and mortgage insurance) would be about $1350.  Depending on your cirucumstance (credit, debts, etc) you would need to make a minimum of $55,000 a year to qualify.  As rates are expected to go up this year as the economy has improved let me give you another scenario.  At a 5% FHA insterest rate, you would need to put a minimum of $10,000 down for a $200,000 home and your payment would be around $1400 a month (principle, interest and mortgage insurance).  Minimum yearly income would go up to about $60,000 depending on your situation. Just a rate incarease of 1/2 a percent woudl increase your minumum down payment by $3000, increase you monthly payment and increase your requirement for yearly income.  This is why it is a buyer market too.  Even with low inventory, it is a GREAT time to buy becaue you can afford more house NOW.  As a disclaimer, check with your lender to verify interest rate and numbers for your specific situation.

You will need an aggresive agent that can win multiple offer situations for you.  That's why you need me.  I have the skills and stategy to get the house that catches your eye.  I am your agent!

So why is it a seller market?  We have EXTREMELY low inventory and it has been steadily DECREASING over the past three years.  In some...