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for hanging in there tonight.
We're discussing the housing
market and depending on where
you stand, you could call it a
crisis. Recent reports point to
only 200. And 50,000 affordable
homes are available in the
United States across this
country. 250,000 That's it with
that said. And that sorry, stat.
Floating around out there and us
telling you about the super high
demand for homes. I wanted to
know if buying a home was even
attainable for Americans
anymore. Well it depends on who
you are financially and what
you're ready to do to purchase a
home. It can be out of reach
depending on how much money you
have, how much you're willing to
spend. So one of the things you
really need to take into account
is what you look like
financially because it very well
might be out of reach for you.
And since she mentioned COVID,
there are a lot of families that
might have had dual incomes that
may now be down to one income,
so those kinds of things really
will impact whether or not What
you're able to get in this
market and play. Yeah. And Noel
when we take a look at the
numbers, and that report also
indicated more homes are on the
country are now at a million
dollars. That is very true. So I
just closed on a $1.2 million
home yesterday. This particular
cup. A couple has been building
this home for over two years, so
they walked into this home with
over $400,000 of equity. And so
that means now their home is
actually worth $1.6 million On
the day of closing. That is a
telltale sign. In the true
indicator of the way that the
prices are increasing in the
current market, so it does make
it a little bit out of reach for
those first time Homebuyers. For
those who are trying to buy
affordable housing around the
country. What should they do at
this point, Miche? There's a few
things you need to do again.
Know who you are financially.
What do you look like? On paper
at the bank? Who are you? Is
this a conventional loan We're
using isn't a cash thing. Are we
using gift funds from family
members? You kind of need to
know what you look like. Because
what you look like on paper is
how you're presenting yourself
to a seller. Some of the other
things that some of our
colleagues will do is get their
clients pre underwritten. What
that means is this Get what the
lender before you start shopping
. Get into your credit report
and let's go ahead and
researched, reveal and remedy
credit problems before we put in
the offer. It may allow you to
close sooner. So instead of
asking for 45 60 days to close,
maybe we can get it done in a
shorter period of time. There
are other things that we can
also do. Which is lean a little
less on the seller. Let's not
ask for a few 1000 seller
contribution to closing costs.
I'll go ahead and pay for the
title policy or the documents.
There are few things you can do
to make this a little more
what would be your suggestions
for buyer out there and this
tough market. So my suggestion
for any buyer that's looking to
purpose a home Whether it's for
your first time 2nd and 3rd time
is to make sure that you have
money saved, Um, to piggyback
off of what Misha said. We want
to make sure that we are not
going in as a fire, asking for
things like clothes and cars,
asking for home warranties,
asking for the seller. It paid
for survey things of that
nature. We want to submit
something that we refer to as a
clean offer. That means straight
at offer, not asking for
anything at all and being able
to do things to get creative
little bit more eye catching,
like double earnest money
deposit What we're doing the
double earnest money deposit.
That means that that virus going
to have to have a little bit
more money. At him when we first
begin that the home buying
journey if you will. And let me
ask both of you this. How can
you avoid getting into one of
these bidding wars because we're
hearing more and more about
bidding wars here, um, in the
city of Houston Rama country
where people are paying well
over the asking price in order
to get them home. Yes I say. I
just literally before our
segment just had a call where we
were outbid my buyers and I on a
home that was $650,000. They had
an all cash offer for $750,000.
My suggestion to avoid bidding
wars is to go new construction.
Now that does not necessarily
mean that you will not have any
bidding war, but it does lessen
the chance of having a bidding
war. You're also able to do
things like customized Your home
as well. If you go new
construction, But if you go new
construction as the buyer, make
sure that you have a real estate
professional to represent you
because the cells wrap it. The
at the new construction
community represents the
represents the builder and not
you. Makes you look. Go ahead.
Yeah I absolutely agree and a
bidding war is not going to be
avoided. I think that's just the
true answer to your question.
We're not in a place where we
can avoid them. The competition
is fierce in Houston. Inventory
has dropped by nearly 20% in
January as compared to January
of last year. It's about the
home prices have gone up.
Tremendously I think by almost
is it, um 19 almost 20% It's
absolutely unreal. So we're not
going to get away from the war.
One of the first things you need
to do, however, is ask yourself
. What did you waiting for? If
you actually have an answer to
that question, what do you
waiting for? In terms of buying
your home? You're not ready. If
there's something that you're
waiting for to happen, you're
not ready to do this. So to know
Wells Point Get your money
together again. Know who you are
financially consider new
construction so that you don't
have to fight for the home but
be ready. All right. Well, we
want to thank you both for