The housing market in my region of Southern California (Temecula/Murrieta/Wildomar/Menifee/Lake Elsinore) is a nightmare for me as a first time home buyer! I am single and looking to purchase a home up to 5K, using FHA. The problem is that cash investors in that market are taking up all the homes in my price range before I even have a chance! What do I do?!
My former realtor is worthless, she just was not interested in dealing with my situation (and I know the odds are against me in this market and most realtors are not interested in helping). I am wondering if at this point I should just contact listing agents directly for each house I like, and work offers through each of them. Meaning, I could actually be having multiple listing agents writing up offers for each property, perhaps at the same time, on my behalf? Does this seem feasible? I know it’s best to have your own agent, but I just want a house! My thought process is that if the listing agent gets to keep ALL the commission (instead of splitting with a buyer’s agent), might he/she be more apt to help me get my offer accepted? Am I really out on a limb here?
How can I find an affordable home as a first time home buyer?!?
February 16, 2011
You are pretty much out on a limb…
The situation you describe is happening all over SoCal, not just the inland empire.
Your best bet is to look at properties that are traditional sales, not short sales or bank owned.
You don’t want to be putting offers on multiple properities. With each offer you will write a check for earnest money (meaning you earnestly mean to purchase the property). This would probably be for $3000-5000. If the seller accepts the offer, the earnest money is placed in escrow towards the purchase of the property. If you back out after the offer is accepted, the seller gets to keep the money to reimburse them for missed opportunity to other buyers.
- by putting offers on multiple properities you could potentially get more than one accepted and you would ultimately lose the earnest money.
You also want your own agent. When things get complicated, which they usually do – with the loan or the inspection or the closing, you want to make sure you are getting information in your best interest. If it’s one agent, there side is the buyers side because they only get paid when the house closes.
Interview multiple realtors, select the one that you think would be most helpful in your situation.