The real estate market is really heating up in the Wilmington NC area. I have recently been working with some first time homebuyers and investors that are looking for properties priced between $100,000 - $135,000. Houses in good condition in this price range are flying off the market. It has become quite the battle to get an offer accepted in this price range.
I showed this morning at 9:30 am a property that hit the market sometime after 11 am yesterday. I called the agent to let him know I was writing an offer and he said it may be too late. He already had 2 offers on the table.
It can be very frustrating to the first time home buyer. Many times they are competing with an Investor that is willing to pay cash and can close next week. Luckily, there are some banks that give the “End User” the first shot. They may give them 14 days to bid before they would open it up to investors. This makes it a little easier for the first time home buyers. Make sure that you are working with a buyers agent that has the technology to get all the NEW listings to you in real time. You want to know about the homes that are in your price range as soon as they hit the market. I encourage my clients to check their email a few times a day for these updates. Many times I will be out showing property when these homes are entered into our local MLS so it is important that you have technology on your side and you see these listings ASAP.
I encourage all my buyers to be prequalified with a lender before we even start looking. Understand, it is taking lenders a longer period to get you a prequalification letter due to all the new guidelines that they have to follow. Many banks have to see paystubs and/or tax returns before they even will write the letter. Banks are really under the microscope due to failed lending practices in the past.
USDA is still offering 100% financing programs in some of New Hanover and all of Brunswick county. This loan product has great rates and can be closed in 45 days (sometimes shorter). For those areas that are not USDA eligible, FHA loans are out there with a minimum of 3.5% down payment. For some of these foreclosure listings that are in “BAD” shape, FHA has a loan that allows you to do repairs and include this into the loan. Ask your lender about this product - It is called the FHA 203k loan.
Happy House Hunting!
-Kirby Keene