Tough Competition For Buyers In Some Real Estate MarketsMay 17 2012
It's been reported that some home buyers are beginning to face difficulty when bidding for their new home. With investors realizing that they can buy a home for less than what it would cost to build one, there can be some tough competition depending on which market you're shopping in.
Investors are buying homes for cheap then renting them out at a price that covers their payments for the mortgage, taxes, insurance and maintenance fees – making investing in real estate an easy decision for most!
If you're a home buyer facing some difficulty when bidding for a home, you should attempt to get not only prequalified, but preapproved for a home loan. This proves that you actually applied for a loan and makes you more appealing to sellers. Also, some investors are able to pay in cash and sellers are beginning to look for contracts without any conditions. As a home buyer, you may have to bid higher than you originally planned or get rid of any contingencies you may have in order to compete with these investors.
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