Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 3 years ago, 11/01/2021
How to Buy Property in Seller's Housing Market
I am looking to purchase my first home to live in one room and rent out the rest. Also, it is a hot market and hard to buy. What are your best suggestions on financing or purchasing a first-time home, and additionally, how do you do that in a hot seller's market? Any help would be appreciated. For further info, I am looking in the greater Philadelphia area. Thanks!
Hi Ben, that's awesome that you're looking to do a house hack! That's definitely a great way to get into real estate investing. With that strategy in mind, your best bet is likely to get a conventional, owner-occupied loan so you can put as little as 3.5-5% down. Given the current market conditions, you could have an easier time getting an accepted offer if you target properties that have been on the market for 2+ weeks instead of going after properties that are fresh on the market. That could result in you needing to put some work into the property, but you could have more success by going away from the crowd.
I live and invest in the Greater Philly area and I'm also a licensed realtor. If you have any further questions or would like some help with your search, feel free to send me a DM so we can connect!
It honestly takes time. Sometimes it'll take many many offers. Go in strong at what you feel comfortable and plug away. Winter time it tends to ease up since it's cold and the Holiday's
- Caleb Brown
@Ben Feder - Develop a letter to accompany your offer. For instance, a letter on why you want to buy in the area, your love of the community, and maybe a few cute family pics. Draw on their "heartstrings". Brandon Turner has few examples of these letters in his many books / articles.
In addition, you need to go in strong or at least have some advantage to your offer in todays market (either going above asking or offer some other advantage). You should definitely have an inspection and appraisal contingency as a first time home buyer, but you could always include an inspection as "purely informational" meaning that you can still walk away if you find something in the house, but you will not negotiate given what is discovered. Talk with your agent, but it is definitely attractive to sellers knowing that you aren't going to "nickel and dime" them during the negotiation of the purchase and sale agreement.
- Andrew Freed
- [email protected]
- 857-267-6556
- Podcast Guest on Show #69