Lost out on a home - Some questions going forward

[Scott Anthony]

Hi all, I hope this is in the right section (if not, please move to right section :)) 

Anyhow, I am a first-time home buyer and lost out on a newly listed home this past weekend.  I knew the house would sell QUICK, so I made it a point to see if the day it was listed.  I offered full asking price with 3.5% concession.  The home was already at the TOP of my budget, so I needed the 3.5% sellers assist.  I found out this morning that my offer didn't win.  The seller ended up going with someone who offered full price with no sellers assist.  A little disappointing, but I'm sure it will work out.  My question(s) are as follows:

1.  What are some aggressive tactics/strategies going forward that I can utilize to make sure the likelihood of this happening doesn't happen again?

2. I'm also thinking about buying a slight "fixer-upper" for less than my budget and putting some renovations into it, but my realtor stated that the only things I can do with a FHA loan are minor cosmetic renovations like carpet, tile, cabinets. What if i wanted to knock a wall down or something of that nature? Is that not allowed with a FHA loan?? I'm quite confused here. Also, let's say I look at a home that's $75,000 below my max budget, but I want to invest $75,000 of renovations into it? How do I go about that?

All advice and help is greatly appreciated!!  Thanks all .

[Sean Lunny]

Hey Scott,

Sorry to hear about that - its going to happen. it happened to me twice last week LOL. You are not alone. That being said, I like to write a letter to the seller with every offer to try and hit some emotional strings so that they will consider my offer over someone else (even when its below asking or in your case having concessions).

As far as the fixer upper - great idea. You can put some money into the home and increase that value and add equity for the next one if thats the route you want to go. 

FHA does have qualifications that must be met - no peeling paint and others that are escaping me right now. You can apply for a 203K loan which is another low money down mortgage that ALLOWS you to buy a rehab, and roll the costs into the mortgage!

I hope that helps!