Home Buying in Long Beach>Question Details

Trulia Long…, Other/Just Looking in Long Beach, CA

What are some tips for first time home buyers to compete with the experienced investors in today's market?

Asked by Trulia Long Beach, Long Beach, CA Thu Apr 4, 2013

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This is happening a lot these days because first time buyers and investors often want the same homes -- usually solid homes at the lower end of the market. Knowing what the house is really worth is the most important thing for the non-investor buyer to understand. One should never bid above that price no matter what a competing buyer does.

Investors often are sophisticated negotiators. They sometimes bid high and bargain some of the money back during inspections and other contractual milestones. As such, it can be useful for other interested buyers to make backup offers for what the house really is worth. The approach can limit the investor's ability to maneuver and give the current owners courage to walk away if it is in the owners' best interest. Obviously, this does not always work and it does require patience. But it is an option in some cases.

1 vote Thank Flag Link Thu Apr 4, 2013
Well said Ron. Thumbs up!!!
Flag Thu Apr 4, 2013
First time buyers can not compete with experienced investors.

First time buyers have to work with their agents and think outside the box.

I try and search for listings that stipulate buyer has to own or occupy the property for a period of time.

I try and stay clear of REO's when working with first time buyers, as REO listings are gold for investors looking for a quick sale on a good deal.

I search for homes that are on the market for the first time in a very long time. These homes are being sold by owner occupants or families of owners whom have passed away. The sellers have an emotional attachment to the home and want to sale it to someone who will have the same.

Kawain Payne, Realtor

ppc uge mybuyers to tryr b
0 votes Thank Flag Link Sun Apr 7, 2013
Buyer's, be they first time or experienced, need to have their information updated and in the hands of their agent. This means the Buyer should have current FICO scores, funds information, and current pre-approval letter from your lender in the hands of your agent. Additionally, each month this data should be updated. Sellers want strong buyers and are not willing to wait while the buyer gathers the information.

Next, asking price can be deceiving. It may be set low by intention, to cause interest. Your Realtor can provide you with comps for recently closed sales. The seller has this information and realizes what their property is able to bring in the open market. If you are serious about a property, make a fair offer, don't low-ball the price! Don't expect a counter-offer. Such a practice is a waste of time and may result in you losing your dream home.
0 votes Thank Flag Link Fri Apr 5, 2013
Very good question. First off some slight good news for first time buyer or buyers as a whole. Investors are still out there but are beginning to dwindle down a tad due to the rise in home prices here in So. Cal. Now one idea is to chase FSBO's, for sale by owners, for that is a market that is beginning to grow out there inventory wise. A second idea is to meet the homeowner(s) while previewing the home so that you can try to make a connection or bond with them. And if you have children this can be a major plus for the owners will see a family who more then likely, if they sell to you, will love the home they are selling as much as they did while living there. My only other tip is not to give up on finding your home for when you do it allows someone else to buy the home you may have purchased but you quit. Final note: Spring time is traditionally one of the busier times of the year when sellers start to list their home plus with the positive price increases on homes over the past year this will pull those homeowners who were on the fence down to the ground to list their home.
0 votes Thank Flag Link Thu Apr 4, 2013
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