I'm approved for 74k. What price range should I be looking? Am I being realistic by looking at 100k homes?

Asked by Kelly, Trenton, MI Tue Apr 28, 2009

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9
Chris Mabry…, , Tucson, AZ
Fri May 8, 2009
Hello Kelly,
For starters, it's great that you are approved. That's the first step. Now, just because you are approved for $74K, doesn't mean you should spend that much. Make sure you have seen a good faith estimate from the lender who pre-approved you. Confirm that property taxes, homeowner's insurance and possible homeowner's dues are included. Then make sure you are comfortable with that monthly payment. In all likelyhood, $100K is probably too much. Coming down 25% off asking price in that price range is hard to do, and a lot of sellers just can't make that work. After paying off their mortgage and paying the agents, there's not a lot left over. A local real estate agent shouyld be able to give you good advise on the specific areas you are considering. I'm not saying that you can't get $25K off, but it's pretty unlikely. Not to mention, if you look at $100K homes, everything you see around $80K will be very dissapointing. Don't set yourself up for that. Best of luck to you!
Web Reference:  http://www.MabryHomes.net
0 votes
Ronald A Col…, , Trenton, MI
Fri May 8, 2009
HI THERE
AS A REAL ESTATE BROKER YOU CAN PUT ANY OFFER YOU WANT

YOU NEVER WILL KNOW WHAT THE BANK WILL TAKE

GOOD LUCK
RON COLLARD
VISION GROUP REALTY LLC
734-341-4099
0 votes
Andy Hargrea…, Agent, Plymouth, MI
Fri May 8, 2009
Kelly --

I personally think the days of "super cheap lowball bids" getting accepted are gone.

Banks have seemingly "finally" gotten it and are pricing homes properly.
We're now seeing banks get multiple offers on good homes with sales prices going OVER asking price.

In fact, my last 5 bank deals were all multiple bid and went over asking price.
I'd highly suggest, much like everyone else on here, to stick to a lower price and try to see if you can find something in that price range you're approved for.
No sense getting disappointed to find one you really love and not be able to afford/get approved for it.
0 votes
Ronald A Col…, , Trenton, MI
Thu Apr 30, 2009
I just sold a Home is Trenton . 3 bedroom updated home for 69000 with 3000 towards closing cost. There are so many deals out there . My Ofiice is on west Rd in Trenton

Ron Collard
Broker
734-341-4099

I also have sold homes in Oakland and Monroe County
0 votes
Ronald A Col…, , Trenton, MI
Thu Apr 30, 2009
Hi Kelly

I would look at hud homes or bank owned . Stay away from short sales, since banks are not willing to work with buyers. And find a good Real Estate Broker that will work hard for you and put in low offers

Ron Collard
Broker
Vision Group Realty LLC
734-341-4099
0 votes
shelley Dixon, Agent, Mt Pleasant, MI
Tue Apr 28, 2009
well it depends on how long you want to wait to get into a home. Yes in this area and this market its very likely t happen
0 votes
Bryan Furse, Agent, Atlanta, GA
Tue Apr 28, 2009
What you are approved for is a ceiling for your spending, based on the lending institution's experience and risk tolerance. It's not like the speed limit on the highway. You shouldn't look to spend at or near that. You would be well advised to look far below what you've been approved for. At the same time, though, there are currently MANY programs out there providing money for people to buy houses with and could help you buy a home with what you have to work with. I would seek out these programs for Michigan and find out which I qualify for. The federal government has submitted $3.9 billion (for example) for the states to distribute to people who need help in buying an REO property. It could be that you might be able to buy a $100k property within your budget. But do your very best not to get a loan that maximizes what you qualify for.
0 votes
Derek Bauer, Agent, South Lyon, MI
Tue Apr 28, 2009
Hello, Kelly!

I will agree with what Maureen said. Unfortunately many buyers feel that because they here that one story (true, or not) where someone picked-up a property for pennies-on-the-dollar, that all are like that. Quite the contrary. I showed a $99,000 home on Friday (it hit the market that day), there were 15 offers, and it was accepted at $115,000.

I have a buyers agent on my team that lives in and covers Wayne County. We would appreciate the opportunity to work with you.

Please visit our website to search for homes, learn about the tax credit, and so much more...

Thank you, Kelly.


Derek Bauer, Associate Broker / Realtor
Real Estate One
Web Reference:  http://DoorToDreams.com
0 votes
Maureen Fran…, Agent, Birmingham, MI
Tue Apr 28, 2009
You are likely looking too high. You need someone to come down more than 25% off of their asking price at 100K and most retail sellers will not be able to afford to do that. I am not sure whatt agents are seeing in Trenton, but in lower price ranges in Oakland County, we are seeing homes sell fairly close to asking price if they are priced right. Find a local buyer's agent and they will give you a good idea of how high you should be looking.

Good luck!
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