Goodbye housing bubble, you won't be missed
Once buyers realize the bubble has burst, they're not eager to blow a new one
There’s a house for sale not far from me. It’s a dump — a small, older split-level on a modest-sized lot on a busy street in a so-so neighbourhood. The photos of the interior look like something built during the Great Depression and largely untouched since. The yard is weedy and unloved. The back has a shed and not much else. There’s no garage. Nevertheless, the guy wants $1.25 million.
No one has been putting much work into the house for a long time. It’s probably not worth renovating; you could flatten it and start over, though you’d still be on a busy street in a so-so neighbourhood. The bottom line is you’d be paying $1.25 million for the chance to spend a lot more building a home that might never be worth the effort.
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Once buyers realize the bubble has burst, they're not eager to blow a new one
There’s a house for sale not far from me. It’s a dump — a small, older split-level on a modest-sized lot on a busy street in a so-so neighbourhood. The photos of the interior look like something built during the Great Depression and largely untouched since. The yard is weedy and unloved. The back has a shed and not much else. There’s no garage. Nevertheless, the guy wants $1.25 million.
No one has been putting much work into the house for a long time. It’s probably not worth renovating; you could flatten it and start over, though you’d still be on a busy street in a so-so neighbourhood. The bottom line is you’d be paying $1.25 million for the chance to spend a lot more building a home that might never be worth the effort.
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A few minutes drive in another direction is another house. It’s bigger, on a nicer lot, in a quieter neighbourhood. It’s been sold twice since 2015 and is on the market again. In 2015, it went for $720,000 and was notably tired-looking inside. The buyers spent some money on it and re-listed in 2019 for $980,000. Since then, it’s been spruced up further and is listed at $1.85 million. In other words, the latest seller wants almost $900,000 profit after three years on some upgrades and much better staging.
I’d be surprised if either seller gets their price. The costlier of the two has already been on the market a month, so no sign of a bidding war on that one. One of the many articles written lately on the state of Toronto’s real estate market reports that prices of detached houses in the city have fallen $500,000 since February, with sales down almost 50 per cent. In the surrounding suburbs, where prices have been only slightly less ridiculous, the decline has been similar: prices down $400,000 in six months, sales down 47 per cent.
I’ve seen this before, more than once. When the Toronto market blew up in 1989, after a similar period of euphoria, it took two decades to recover. I remember putting a big deposit on a high-rise condominium I didn’t really want, out of fear that it would be the last chance — ever! — to get my very own bit of property. Luckily, I quickly reconsidered and got most of my money back. But many didn’t, and they spent 20 years paying mortgages on buildings that weren’t worth it.
It works that way because once buyers realize the bubble has burst, they’re not eager to blow a new one. Ontario Premier Doug Ford, who is selling his house in a pleasant corner of the city so he can buy his parents’ old place, had to chop the asking price by $400,000 after just two weeks. The premier presumably has access to some moderately knowledgeable bankers and realized that if he didn’t slash now, he could have to slash a lot more later.
A lot of people have trouble accepting that fact. The guy near me who is asking close to double what he paid three years ago may be reluctant to accept that he missed the boat. A lot of people made a lot of money by flipping places during the price rise, often having done little more than sit on their purchase for a year or so.
It worked so well for so long, people came to accept it as the norm. House flippers thought they’d actually earned something, when they often just shuffled money around and waited. Now they don’t want to admit the fun is over, and figure if they just sit tight long enough, the market will turn foolish again and they can still get their big cash-out.
It could be a long wait. The reason sales are falling so precipitously is that buyers now expect sellers to make the concessions. If prices have dropped half a million in six months, they might drop another half million down the road. Who knows?
In the meantime, why offer more than you have to? Just in the past month, according to another report, the average Toronto home prices fell $133,000. Which is a substantial amount given today’s higher mortgage rates. Rates may eventually ease, but having admitted it waited too long to raise them, the Bank of Canada may be reluctant to move too quickly to cut them again.
A lot of people are likely to get hurt as the market re-organizes itself: with houses that aren’t worth what they cost, with mortgages they can’t really afford, with homes they bought on the assumption they’d have no trouble selling their existing house at a big profit.
The real estate business is a great game when it’s working in your favour, but it’s still a business and not a cash-printing machine. People keep making the mistake of thinking it’s guaranteed money. It’s not. Over time, property generally grows in value. But abuse it and it’s easy to get burned.
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I’d be surprised if either seller gets their price. The costlier of the two has already been on the market a month, so no sign of a bidding war on that one. One of the many articles written lately on the state of Toronto’s real estate market reports that prices of detached houses in the city have fallen $500,000 since February, with sales down almost 50 per cent. In the surrounding suburbs, where prices have been only slightly less ridiculous, the decline has been similar: prices down $400,000 in six months, sales down 47 per cent.
I’ve seen this before, more than once. When the Toronto market blew up in 1989, after a similar period of euphoria, it took two decades to recover. I remember putting a big deposit on a high-rise condominium I didn’t really want, out of fear that it would be the last chance — ever! — to get my very own bit of property. Luckily, I quickly reconsidered and got most of my money back. But many didn’t, and they spent 20 years paying mortgages on buildings that weren’t worth it.
It works that way because once buyers realize the bubble has burst, they’re not eager to blow a new one. Ontario Premier Doug Ford, who is selling his house in a pleasant corner of the city so he can buy his parents’ old place, had to chop the asking price by $400,000 after just two weeks. The premier presumably has access to some moderately knowledgeable bankers and realized that if he didn’t slash now, he could have to slash a lot more later.
A lot of people have trouble accepting that fact. The guy near me who is asking close to double what he paid three years ago may be reluctant to accept that he missed the boat. A lot of people made a lot of money by flipping places during the price rise, often having done little more than sit on their purchase for a year or so.
It worked so well for so long, people came to accept it as the norm. House flippers thought they’d actually earned something, when they often just shuffled money around and waited. Now they don’t want to admit the fun is over, and figure if they just sit tight long enough, the market will turn foolish again and they can still get their big cash-out.
It could be a long wait. The reason sales are falling so precipitously is that buyers now expect sellers to make the concessions. If prices have dropped half a million in six months, they might drop another half million down the road. Who knows?
In the meantime, why offer more than you have to? Just in the past month, according to another report, the average Toronto home prices fell $133,000. Which is a substantial amount given today’s higher mortgage rates. Rates may eventually ease, but having admitted it waited too long to raise them, the Bank of Canada may be reluctant to move too quickly to cut them again.
A lot of people are likely to get hurt as the market re-organizes itself: with houses that aren’t worth what they cost, with mortgages they can’t really afford, with homes they bought on the assumption they’d have no trouble selling their existing house at a big profit.
The real estate business is a great game when it’s working in your favour, but it’s still a business and not a cash-printing machine. People keep making the mistake of thinking it’s guaranteed money. It’s not. Over time, property generally grows in value. But abuse it and it’s easy to get burned.
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آگهی یکی از دوستان
اگر کسی تمایل به خرید سریع ماشین تسلا مدل Y (وای) سال ۲۰۲۲ دارد و نمیخواهد توی نوبت ۹-۷ ماهه بمونه، یکی از آشنایان که ۷ ماه پیش ثبت نام کرده می تواند این مدل ماشین را درماه سپتامبر بهشون بفروشه. در صورت تمایل خصوصی پیغام بدید.
تشکر
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اگر کسی تمایل به خرید سریع ماشین تسلا مدل Y (وای) سال ۲۰۲۲ دارد و نمیخواهد توی نوبت ۹-۷ ماهه بمونه، یکی از آشنایان که ۷ ماه پیش ثبت نام کرده می تواند این مدل ماشین را درماه سپتامبر بهشون بفروشه. در صورت تمایل خصوصی پیغام بدید.
تشکر
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Updated Bank Forecast Calls for 23% Decline in Home Prices
Lacklustre economic data, along with tumbling home sales and prices, have led a Canadian bank to release an even more bearish outlook on the housing market, calling for a 23% decline in the average home price between February 2022 and December 2023.
Written by Desjardins Principal Economists Hélène Bégin and Marc Desormeaux, and Senior Director of Canadian Economics Randall Bartlett, the updated residential real estate outlook calls for deeper price pain than the 15% decline the bank initially forecasted at the start of the summer.
“Canada’s housing market is correcting quickly, and faster than we anticipated in our downbeat June forecast,” reads the report.
“At the time, we expected the average home price to fall by 15% nationally from its February 2022 high to the end of 2023. But we’re almost there already. We now expect home prices to fall between 20% and 25% from peak to trough.
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Lacklustre economic data, along with tumbling home sales and prices, have led a Canadian bank to release an even more bearish outlook on the housing market, calling for a 23% decline in the average home price between February 2022 and December 2023.
Written by Desjardins Principal Economists Hélène Bégin and Marc Desormeaux, and Senior Director of Canadian Economics Randall Bartlett, the updated residential real estate outlook calls for deeper price pain than the 15% decline the bank initially forecasted at the start of the summer.
“Canada’s housing market is correcting quickly, and faster than we anticipated in our downbeat June forecast,” reads the report.
“At the time, we expected the average home price to fall by 15% nationally from its February 2022 high to the end of 2023. But we’re almost there already. We now expect home prices to fall between 20% and 25% from peak to trough.
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Homebuyers Can Expect Another 10% Chop in Purchasing Power as Rates Rise
As interest rates have spiralled ever higher since March — and are certain to be hiked once again on September 7 — would-be homebuyers’ purchasing power is steadily decreasing.
In fact, the average borrower can expect to see their affordability whittled by more than 10% in the near future, according to lending experts.
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As interest rates have spiralled ever higher since March — and are certain to be hiked once again on September 7 — would-be homebuyers’ purchasing power is steadily decreasing.
In fact, the average borrower can expect to see their affordability whittled by more than 10% in the near future, according to lending experts.
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Rob McLister, mortgage analyst at Mortgagelogic news, recently wrote in a note that should the central bank pass on a 50-basis-point increase in their next rate announcement, he anticipates a 12% drop for a household earning $100,000, compared to the rates they had access to prior to the July 13th hike.
“Rocketing rates have taken a voracious bite out of mortgagors’ buying power. And it’ll likely get worse before it gets better,” he wrote, pointing to a recent aggregate affordability measure from RBC that pins levels at their worst-ever nationwide.
“This nonstop constriction of mortgage amounts is all too real for the seven out of eight homebuyers aged 25 to 44 who rely on home financing. About two-thirds of them purchase as much home as they can afford, according to CMHC.”
“This loss of leverage could easily take down CREA’s average home price more than 20% from the peak, readily eclipsing the 18.6% decline we saw in 2017-19,” he added.
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“Rocketing rates have taken a voracious bite out of mortgagors’ buying power. And it’ll likely get worse before it gets better,” he wrote, pointing to a recent aggregate affordability measure from RBC that pins levels at their worst-ever nationwide.
“This nonstop constriction of mortgage amounts is all too real for the seven out of eight homebuyers aged 25 to 44 who rely on home financing. About two-thirds of them purchase as much home as they can afford, according to CMHC.”
“This loss of leverage could easily take down CREA’s average home price more than 20% from the peak, readily eclipsing the 18.6% decline we saw in 2017-19,” he added.
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The metaverse is here to stay, Canadians say, and it's influencing how they shop
More than half of Canadians believe the metaverse will be part of everyday life within the next decade, study says
Many Canadians believe the metaverse is the way of the future, according to new research by fintech company Afterpay Ltd.
The metaverse is a virtual reality space that some experts are calling the next version of the internet. Many companies have been using the space to showcase their products and connect with consumers in a much more interactive way than a traditional online marketplace.
The study interviewed more than 2,000 adults from the United States and Canada. It found that more than half of Canadians believe the metaverse will be part of everyday life within the next decade.
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More than half of Canadians believe the metaverse will be part of everyday life within the next decade, study says
Many Canadians believe the metaverse is the way of the future, according to new research by fintech company Afterpay Ltd.
The metaverse is a virtual reality space that some experts are calling the next version of the internet. Many companies have been using the space to showcase their products and connect with consumers in a much more interactive way than a traditional online marketplace.
The study interviewed more than 2,000 adults from the United States and Canada. It found that more than half of Canadians believe the metaverse will be part of everyday life within the next decade.
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That number is even higher among younger generations who grew up in the digital age: 60 per cent for gen-Zs and 70 per cent for millennials.
And it’s influencing the way consumers shop. The survey found that 60 per cent of Canadians are interested in buying real-world items in the metaverse. That compares with 70 per cent of gen-Zs and almost 80 per cent of millennials in North America.
According to the report, younger consumers are seeking an “omnichannel or nothing” shopping experience. Essentially, they “want more ways to shop – no matter what it is or where they are.”
The survey found that more than half (54 per cent) of gen-Zs in North America value brands that have both online and offline stores. A quarter of the generation has even abandoned a brand because their preferred method of payment was unavailable.
Over half of North American gen-Zs (57 per cent) and millennials (50 per cent) indicated that they have voice-shopped in the last year. Convenience, along with product reviews and ratings, were key reasons to shop online among gen-Zs. In fact, 40 per cent of gen-Zs said they were likely to ditch a brand because of a lack of reviews.
But the next generation of consumers is not giving up on brick-and-mortar stores, either. The report said that gen-Zs tend to shop more in-store for items they want immediately in order to avoid wait times and delivery fees.
They are also being mindful of information privacy while doing their shopping. More than 60 per cent of gen-Zs indicated that data protection is critical.
In addition, young consumers want to shop sustainably when possible. The survey found that more than 20 per cent have stopped buying from a brand because of sustainability reasons. A further 21 per cent of gen-Zs said they are likely to discontinue using a brand that has a poor reputation for sustainability.
“Gen-Zs have a complex set of values. They care deeply about the environment and want brands to move with purpose. However, they’re also seeking brands who can provide more seamless and convenient ways to shop through technology,” Ryann Carruthers, Afterpay Canada’s general manager, said in a press release. “The data suggests it’s complicated, and there is a disconnect between how gen Z acts and how they feel — businesses need to recognize this disparity.”
The study showed that Canadian consumers seem to prioritize sustainability more than their American counterparts. A brand’s commitment to eco-friendliness inspired loyalty among 49 per cent of Americans and over 58 per cent of Canadians.
The difference is even more prominent when comparing the younger generation: 72 per cent of Canadian gen-Zs said they try to shop sustainably in comparison to only about 50 per cent of their American peers.
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And it’s influencing the way consumers shop. The survey found that 60 per cent of Canadians are interested in buying real-world items in the metaverse. That compares with 70 per cent of gen-Zs and almost 80 per cent of millennials in North America.
According to the report, younger consumers are seeking an “omnichannel or nothing” shopping experience. Essentially, they “want more ways to shop – no matter what it is or where they are.”
The survey found that more than half (54 per cent) of gen-Zs in North America value brands that have both online and offline stores. A quarter of the generation has even abandoned a brand because their preferred method of payment was unavailable.
Over half of North American gen-Zs (57 per cent) and millennials (50 per cent) indicated that they have voice-shopped in the last year. Convenience, along with product reviews and ratings, were key reasons to shop online among gen-Zs. In fact, 40 per cent of gen-Zs said they were likely to ditch a brand because of a lack of reviews.
But the next generation of consumers is not giving up on brick-and-mortar stores, either. The report said that gen-Zs tend to shop more in-store for items they want immediately in order to avoid wait times and delivery fees.
They are also being mindful of information privacy while doing their shopping. More than 60 per cent of gen-Zs indicated that data protection is critical.
In addition, young consumers want to shop sustainably when possible. The survey found that more than 20 per cent have stopped buying from a brand because of sustainability reasons. A further 21 per cent of gen-Zs said they are likely to discontinue using a brand that has a poor reputation for sustainability.
“Gen-Zs have a complex set of values. They care deeply about the environment and want brands to move with purpose. However, they’re also seeking brands who can provide more seamless and convenient ways to shop through technology,” Ryann Carruthers, Afterpay Canada’s general manager, said in a press release. “The data suggests it’s complicated, and there is a disconnect between how gen Z acts and how they feel — businesses need to recognize this disparity.”
The study showed that Canadian consumers seem to prioritize sustainability more than their American counterparts. A brand’s commitment to eco-friendliness inspired loyalty among 49 per cent of Americans and over 58 per cent of Canadians.
The difference is even more prominent when comparing the younger generation: 72 per cent of Canadian gen-Zs said they try to shop sustainably in comparison to only about 50 per cent of their American peers.
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9 Tips for Finding a Bargain-Priced Home
No matter what your local housing market is like, there are always strategies for finding cheaper homes. Here are nine of them.
how to find cheap houses
Sure, competition for homes is cooling, but with mortgage rates climbing and home values still rising at a significantly higher pace than what was typical pre-pandemic, it may feel like finding a deal when buying a house is far from achievable. The good news: it’s not. We spoke with expert buyers agents to learn some of the best housing market hacks for finding lower-priced homes in your market. These strategies tend to apply no matter the pace of your local housing market, but talk to your agent to learn what approach(es) might work best for your own goals and budget. (More on that below.)
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No matter what your local housing market is like, there are always strategies for finding cheaper homes. Here are nine of them.
how to find cheap houses
Sure, competition for homes is cooling, but with mortgage rates climbing and home values still rising at a significantly higher pace than what was typical pre-pandemic, it may feel like finding a deal when buying a house is far from achievable. The good news: it’s not. We spoke with expert buyers agents to learn some of the best housing market hacks for finding lower-priced homes in your market. These strategies tend to apply no matter the pace of your local housing market, but talk to your agent to learn what approach(es) might work best for your own goals and budget. (More on that below.)
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Here are nine tips for bypassing bidding wars and raising your chances of finding an affordable home.
1. Look for homes that have been on the market for longer than 30 days.
There are deals to be had in houses that have been on the market for a few weeks. We can tell buyers looking for a more affordable house to start with properties that have been on the market for as little as 15 days. “For every 15 days, we can usually negotiate 2% to 3% off the purchase price,” . “Once it hits the 30-day mark, sometimes we can negotiate 5% to 10% off the price.”
2. Stay away from turnkey homes and extreme fixer-uppers.
You can save money by buying a house that’s not 100% move-in ready and doing a little work yourself. A bit of sweat equity can increase your buying power. But don’t go for a house that needs a gut reno unless you have a separate stash of cash saved for the work.
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1. Look for homes that have been on the market for longer than 30 days.
There are deals to be had in houses that have been on the market for a few weeks. We can tell buyers looking for a more affordable house to start with properties that have been on the market for as little as 15 days. “For every 15 days, we can usually negotiate 2% to 3% off the purchase price,” . “Once it hits the 30-day mark, sometimes we can negotiate 5% to 10% off the price.”
2. Stay away from turnkey homes and extreme fixer-uppers.
You can save money by buying a house that’s not 100% move-in ready and doing a little work yourself. A bit of sweat equity can increase your buying power. But don’t go for a house that needs a gut reno unless you have a separate stash of cash saved for the work.
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Home renovations are much more expensive, difficult and time-consuming than they appear on HGTV. With inflation pushing up prices for everything from lumber to labor, you might spend more than you planned to fix up a project house that looked like a bargain.
The sweet spot, budget-wise, is a home that’s between those extremes. Look for a middle ground with a home that needs a little TLC, not a total rehab. Keep an eye out for homes with no structural issues that need a little cosmetic work like removing popcorn ceilings, laying new carpet or repainting too-bright interior or exterior colors.
3. Shop lower-priced alternatives to traditional single-family homes.
Sure, a single-family home with a yard is the official North American Dream for many. But there are alternative ways to buy a home. Consider buying a condo, co-op or townhome where you share a wall with neighbors. Or think multi-family homes that allow you to split the homeowning costs with others. You could team up with friends to buy a home and pool your money for the mortgage, down payment and cost of upkeep.
Or, you could buy a duplex or triplex, live in one unit and use the rent from the others to help pay the mortgage. Another option is an accessory dwelling unit, also called an ADU or a mother-in-law suite, that shares a yard with a main house. ADUs have become popular in dense cities with no raw land to build more houses. They’re a good pick for first-time homeowners who don’t need a lot of space or empty nesters. Check out manufactured homes, too, which have come a long way from the days of the ugly doublewide and evolved into affordable homes with design cred.
4. Look for homes with less desirable features.
Your dream home may not be a 1960s split-level with a galley kitchen by a cemetery or a 1970s ranch house with a conversation pit near a busy road. But you can get more for your housing dollar if you accept a house that is, well, off-trend and not in the perfect location. Buying a house that is a bit less desirable can help you get into a neighborhood that might otherwise be out of your price range. Buying the worst house on the best block is a time-tested way to find a place to live without blowing your budget. Be sure you’re OK with the location you pick because you cannot change it. The 24-hour convenience store that will be your neighbor and helped push the house price down $20,000 isn’t going away once you close.
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The sweet spot, budget-wise, is a home that’s between those extremes. Look for a middle ground with a home that needs a little TLC, not a total rehab. Keep an eye out for homes with no structural issues that need a little cosmetic work like removing popcorn ceilings, laying new carpet or repainting too-bright interior or exterior colors.
3. Shop lower-priced alternatives to traditional single-family homes.
Sure, a single-family home with a yard is the official North American Dream for many. But there are alternative ways to buy a home. Consider buying a condo, co-op or townhome where you share a wall with neighbors. Or think multi-family homes that allow you to split the homeowning costs with others. You could team up with friends to buy a home and pool your money for the mortgage, down payment and cost of upkeep.
Or, you could buy a duplex or triplex, live in one unit and use the rent from the others to help pay the mortgage. Another option is an accessory dwelling unit, also called an ADU or a mother-in-law suite, that shares a yard with a main house. ADUs have become popular in dense cities with no raw land to build more houses. They’re a good pick for first-time homeowners who don’t need a lot of space or empty nesters. Check out manufactured homes, too, which have come a long way from the days of the ugly doublewide and evolved into affordable homes with design cred.
4. Look for homes with less desirable features.
Your dream home may not be a 1960s split-level with a galley kitchen by a cemetery or a 1970s ranch house with a conversation pit near a busy road. But you can get more for your housing dollar if you accept a house that is, well, off-trend and not in the perfect location. Buying a house that is a bit less desirable can help you get into a neighborhood that might otherwise be out of your price range. Buying the worst house on the best block is a time-tested way to find a place to live without blowing your budget. Be sure you’re OK with the location you pick because you cannot change it. The 24-hour convenience store that will be your neighbor and helped push the house price down $20,000 isn’t going away once you close.
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5. Consider putting an offer on a contingent house.
In real estate, contingent homes mean the seller has accepted a buyer’s offer, but the sale won’t go through until certain criteria are met. Guess what? Contingent home deals can fall through. If financing falls through, the appraisal comes in low or the home inspection turns up a surprise, the house may go back on the open market. If you have a backup offer in place, it goes to you. You can swoop in and get the house before other buyers know it’s available. You’ll have to move fast if a contingent deal falls through and the house drops into your lap, but you’ll not have as much competition for it. That’s because most buyers scroll past a listing marked “contingent” because they don’t know they can make an offer. You might be able to swoop in and get a deal.
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In real estate, contingent homes mean the seller has accepted a buyer’s offer, but the sale won’t go through until certain criteria are met. Guess what? Contingent home deals can fall through. If financing falls through, the appraisal comes in low or the home inspection turns up a surprise, the house may go back on the open market. If you have a backup offer in place, it goes to you. You can swoop in and get the house before other buyers know it’s available. You’ll have to move fast if a contingent deal falls through and the house drops into your lap, but you’ll not have as much competition for it. That’s because most buyers scroll past a listing marked “contingent” because they don’t know they can make an offer. You might be able to swoop in and get a deal.
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6. Look at foreclosure auctions.
If a homeowner cannot pay their mortgage and defaults on their home loan, the lender can put it on the market as a foreclosure. These houses are listed publicly by city, county or state agencies, depending on local law, and sold at auction where you can pick up a deal. You should hire an agent specializing in foreclosures who can walk you through the buying process.
7. Find an agent who is an expert in the area where you want to live.
If you know what area of a city you want to be in, find an agent who is in the area. They often know about houses coming up for sale before they hit the MLS. They may be able to connect you directly to a seller because they have an ear to the ground. “We know just by talking to people and working our connections when someone is going to sell,”.An agent who knows a neighborhood saves you money because, essentially, if you can get to the seller first, it might mean you avoid competition from other buyers that drives up the price of the home.
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If a homeowner cannot pay their mortgage and defaults on their home loan, the lender can put it on the market as a foreclosure. These houses are listed publicly by city, county or state agencies, depending on local law, and sold at auction where you can pick up a deal. You should hire an agent specializing in foreclosures who can walk you through the buying process.
7. Find an agent who is an expert in the area where you want to live.
If you know what area of a city you want to be in, find an agent who is in the area. They often know about houses coming up for sale before they hit the MLS. They may be able to connect you directly to a seller because they have an ear to the ground. “We know just by talking to people and working our connections when someone is going to sell,”.An agent who knows a neighborhood saves you money because, essentially, if you can get to the seller first, it might mean you avoid competition from other buyers that drives up the price of the home.
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8. Understand that the highest offer doesn’t always win.
Don’t walk away from a house with other bidders because you figure there’s no way you’ll have the cash to make the highest offer. Sometimes the high offer falls through, and sometimes sellers are looking for something other than top dollar — like flexibility on when they move. “I’ve had sellers work with buyers on the price if the buyer would let them stay in the home while they find another place to live,”.
We have done deals where the seller stayed in the house up to 10 months after the deal closed. “A buyer who can be patient with timing is often more desirable to a seller. That gives the seller time to figure out where they will go without pressure. Perhaps they could have gotten more money on the open market but to (the seller), being able to move on their timeline was more important.”
9. Don’t forget to explore government-sponsored programs.
This tip won’t help you find cheap houses per se, but it may help make your mortgage payment for your home more affordable. There are a range of local and federal government programs aimed at helping first-time homebuyers, public service workers, veterans and low-income earners.
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Don’t walk away from a house with other bidders because you figure there’s no way you’ll have the cash to make the highest offer. Sometimes the high offer falls through, and sometimes sellers are looking for something other than top dollar — like flexibility on when they move. “I’ve had sellers work with buyers on the price if the buyer would let them stay in the home while they find another place to live,”.
We have done deals where the seller stayed in the house up to 10 months after the deal closed. “A buyer who can be patient with timing is often more desirable to a seller. That gives the seller time to figure out where they will go without pressure. Perhaps they could have gotten more money on the open market but to (the seller), being able to move on their timeline was more important.”
9. Don’t forget to explore government-sponsored programs.
This tip won’t help you find cheap houses per se, but it may help make your mortgage payment for your home more affordable. There are a range of local and federal government programs aimed at helping first-time homebuyers, public service workers, veterans and low-income earners.
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