What Price Do You Offer If Using FHA or CHFA: Denver Metro Area Advice
by : Mari Takeshita
This may give you an idea of what has been happening, but how do you really come to a figure? Asking your Realtor is the best way to start.
My clients always ask me, “What price should I offer the seller” My answer is always the same. ” Let me find out what’s going on and then we will know where we stand.” Because each situation with the property, the seller, the financing is different, it takes more than a blunt answer of what percentage up or down to offer that particular seller.
Is the property a HUD home? A distressed seller with no other offers? A fixed/remodel with a dozen offers? Many agents don’t bother to determine the facts of the sellers situation and that is a disadvantage to you.
You need someone working on your behalf to not just write an offer.. But to make sure it is the offer that will get you under contract and works within your financial ability and comfort zone.
When I am the listing agent and an offer comes in without a prior phone call from the buyer’s agent to find out how many offers are being reviewed, how much flexibility there maybe with timing, the sellers position on particular financing, it tells me how much that agent doesn’t know about negotiations.
Make sure the agent you are working with has strong negotiation skills. Only 10% of the agents that are licensed came into the business with strong negotiations skills they learned from previous job experiences. If your agent loses more offers for you than gets, you need to consider who you are working with; to purchase the most important and most expensive item you will purchase.
Sit back and consider what that means to you in thousands of dollars over spent or the home you loved lost in negotiations.
Many agents are not familiar with CHFA or CHAC and some haven’t had an FHA buyer in months or years. First time buyers that use an agent that isn’t familiar with these programs truly is the ” blind leading the blind”.
Ask the agent you are working with how many CHAC, CHFA, AURORA HOAP, etc program buyers they have worked with recently. These programs change continually and a knowledgable agent must keep up with the rates and policies and know how they will or not work for you. And does that agent know what mortgage people to refer you to for those programs. It’s not as easy as you think.
It is a sellers market in most price ranges, but there are more factors than just dollars.. It’s positioning you as a great buyer and aware buyer to the listing side. Trust me… It makes a huge difference to the listing agent and in turn will solicit confidence to the seller to select your offer over the others, even if you are the down payment assistance buyer, using CHFA or CHAC, needing an FHA loan.
June – 2013 Real Estate Market Stats
Entire MLS (All Areas)
11.4% increase in the number of closed sales year-over-year
19% increase in the number of closed sales year to date
39.4% decrease in average days on market (43 days in June)
16.7% decrease in # of active listings
22.3% increase in # of new listings (6018 new listings in June)
7.7% increase in average price – sold ($349,339 in June)
22.8% increase in number of closed sales year-over-year
23.5% increase in number of closed sales year to date
41.9% decrease in average days on market (43 days in June)
12% decrease in # of active listings
36.3% increase in # of new listings (1527 new listings in June)
9.1% increase in average price – sold ($198,040 in June)
Based on Information from Metrolist, Inc. for the period Jan 2009 through present. Note: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Data maintained by metrolist, Inc. may not reflect all real estate activity.
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