Can someone help me find a home for 28-30k?

Question

I'm trying to buy a place, but it seems like the real estate market is shady. All of the homes I've been interested in have sold for under or slightly above what I have, even though they were listed for much more originally. I only recently discovered this when I looked at the Zillow "sold" listings. Why is it that when I call the listing agents they always seem annoyed and don't want to 1.Answer the phone 2. Give me information about properties 3. Take an offer? Then a week later I see the property sold for what i would have offered or even less. It's ridiculous.

I'm looking for something in the Hoke county area. Raeford, Aberdeen, Hope Mills, Parkton, St Pauls. I know anything at this price point is going to need some work, but not too much as I see properties in good living condition like (doublewide/land) being sold for this price every week.

I made a post a year and a half ago about 17k and people told me I needed to save up a little more, now I'm at 30k and still I can't get anything.

Robert Ombres · Answer

I'd recommend connecting with a local real estate agent to represent you. The seller is going to cover their commission, almost always- unless it's a For Sale By Owner, then that will require negotiating.Other options of "finding" a property will likely require more money out of your own pocket. Anyone who says "I can help" without signing a buyer agency agreement, I'd get extreme clarity on what their fees are going to be and what exactly they are going to do to "help" you, as they aren't legally representing you.*One problem you may find here is a buyer agent willing to spend time showing properties in this price range. If they're receiving a 3% commission, that's $900 on a $30k property. You may HAVE to go directly to the listing agent. Now, that's not entirely a bad thing, though it is less ideal. In that case, the listing agent will be representing the seller. You could ask that they sign a dual agency agreement- designated or not. This will either allow that agent to have another broker in their firm represent you through the transaction- or it will make the listing agent represent both of you by "stepping back" and acting more as a referee than a coach. They still must reveal all legally required information/disclosures. They can't advise you what to do with that information or what information to seek further however.You'll want a home inspection and that will reveal other items that you may want to spend more money to investigate.Zillow information is often incorrect. When you see "Sold" properties on Zillow at lower prices, you may not be getting the full picture. Also, check the sold date.The real estate market isn't "shady." Homes often get listed at "Let's just try" prices and eventually sell for "market value."By your post, I understand you have $30k saved? Would you qualify for a loan so that you can expand your options beyond what is listed for $30k?I do wish you luck. Finding something in that price range would be nearly impossible in my local market. At the time of this post, there are only 45 properties on the Carolina MLS (stretching from Asheville to Fayetteville) priced $0-30,000. There are only 171 up to $50,000. There are only 5 listed within my service area. The only one I would guess is inhabitable is Under Contract.Please do refer back and ask us questions if you have any about the buying process or possible options that might expand your search.

Alexander Felice · Answer

What are you buying in Hope mills for 30k?!?!? sounds like you have an agent problem, communication should be WAY tighter. Find someone who is more aligned with your goals and style. Also remember that at that price point no brokers are making any money. Their financial incentive is low, so do your best to make their life as easy as possible.

Chris Martin · Answer

Account Closed many of these properties are non-conforming from an underwriting standpoint. Page 269 of the FMSG will eliminate eligibility for a fair number of these inexpensive properties. So a large percentage of these really cheap MH with land are cash sales. Having cash isn't a differentiator, it's really a requirement. I have no insight as to the OP's ability to obtain a loan. What will get the listing agent's attention is a property filled OTP Form 2-T, and that's what a buyer's agent brings to the table. The buyer's agent will also have the OP obtain a suitable POF. A listing agent is less likely to stiff a buyer's broker.

John Teachout · Answer

Pay off that medical bill to make it go away. Anything like that on a credit report can affect it.

Chris Martin · Answer

I don't know if the OP will buy and occupy as owner-occupied or not. So a 'portfolio' lender may not be appropriate. A 'portfolio' lender, at least those in central NC where I operate and the OP is looking, will generally have more stringent underwriting of the borrower than a GSE, but somewhat less stringent underwriting requirements of the property than a GSE. An Example of a commercial lender's underwriting in the Hoke county vicinity is in this document on pages 28-29. They look for customers with established bank relationships and 680+ type scores. This bank merged with UCB and the UCB bank isn't as (publicly) transparent on their lending requirements, but they are similar. I have financed $30K +/- property via a commercial bank but only as a tranche that met their minimum lending amounts. I would bundle X cheaper properties, X being between 4 and 7 usually, and could also include some non-conforming properties (e.g. HUD UI, condos where NOO>50%… )I am getting off topic. A good buyer's broker will know what property the OP could potentially finance based on credit, the PCR, etc.

Merrick Loveland · Answer

I may be able to help, shoot me a private message.

Chris Martin · Answer

@Mike Jones you may have better results if you have a buyer's broker representing you.

Account Closed · Answer

Thank you for providing this additional information. A low credit score is normal for having little credit history. Be careful how much you pull your credit. I don't want to bore you to tears, but certain "credit inquires" lower the score. I think one pull per year is ok. I have a feeling the best ideas for you may be these: Option 1) "hard money" This is obtained from a loan company or mortgage company. You need to find a "hard money" lender. They are here on Bigger Pockets. Look around. I don't know where, but I have seen them. To get this, you need a hard money mortgage broker. I suggest an old timer who will know exactly how to handle this in a hot minute. Forget the banks. Your scenario is not going to fit a bank. (It could, but very unlikely.) Hard money will have a higher interest rate attached to it. Also it will be for less than 30 years. There could be a prepayment penalty. Make sure your hard money lender is licenses at your state licensing website. Why do I suggest hard money? Because they go by equity in the deal You are putting a high percentage of down payment. An equity lender likes that. They like at least 30% down. Read the terms carefully. Read every word. They can write their own deal tailored to you [sometimes!] Option 2) Make the owner an "installment sale" type offer. If your seller is willing, this is a fabulous way to go. This means the current owner accepts your down payment now and accepts the rest over one year or more years. Why would an owner take this deal? Because it will allow them to sell the property. It is possible they cannot sell it for the same reasons you have been unable to buy it. You could offer them the downpayment now and the rest in equal payments over 24 months. They would be happy to have the cash right away. Then if you missed a payment, they get the place back. (I don't want this to happen for you, but that's pretty much how it works.)Now, once you get one of the deals above, you need to save copies of each and every check you pay on the mortgage. Why? Here is why: most banks report regular mortgage payments to the credit bureau. This helps a newby raise their score. Neither option above does this. The owner does not report to the credit bureau and not all hard money lenders do this. Why do I want you to save copies? Because if you want to buy property number 2 you can pull out the copies and cancelled checks showing your on time payments. This will help you toward getting a "regular loan" next time. Keep me posted.

Account Closed · Answer

I'm trying to understand why someone with this amount of cash would buy MH.

Account Closed · Answer

Did not know this info.How about trying a portfolio lender?