Can someone help me find a home for 28-30k?
Raeford, NC · Member since 2018 · 20 posts · 0 votes
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.
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.
I may be able to help, shoot me a private message.
@Mike Jones you may have better results if you have a buyer's broker representing you.
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.
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.
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.
As I stated earlier I'm looking for a double-wide affixed to some land. I'm not sure why you seem so in disbelief at the 30k price. If you look at the recently sold listing , which goes back years on any of the realtor sites. Realtor.com/Zillow.com etc. 30k is the median range. They usually sell for 20-40k. of course they are going to need some work, but still livable. There have been about 4 sold this week alone.
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.
As I stated earlier I'm looking for a double-wide affixed to some land. I'm not sure why you seem so in disbelief at the 30k price. If you look at the recently sold listing , which goes back years on any of the realtor sites. Realtor.com/Zillow.com etc. 30k is the median range. They usually sell for 30-40k. of course they are going to need some work, but still livable. There have been about 4 sold this week alone.
Ah I must have missed that it was a mobile. I own a few houses in Hope Mills so I'm familiar with the area.
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.
They aren't on the MLS, because they get sold quickly. As I said to the person below. I know of 4 that have sold this past alone. I see you're from Asheville. Property values are different there. I have to disagree with you, and say the real estate business is SHADY, because I watch there properties get sold at or below the price I'm offering. It's clear that these listing agents have bias and are selling these properties to specific people that they have business relationships with. That's the only thing that makes sense. They are completely disinterested in giving information about the properties won't take offers, but sell them for less than what I said I would offer. This isn't an isolated issue either.
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.
Hi Mike-
I think you are finding some snobs over there. I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent. But heck if you have CASH??? And you TELL THEM you have cash? They should be running up to meet you. It sounds like you didn't tell them you had cash.
Now. Since you have cash, I am going to ask you how much you know about financing. Did you know a loan broker can get you a property for (give or take) $100,000? That implies you put down $25000. That's a pretty solid down payment. You'd have a loan of $75000, At 4% interest your payment would be (give or take) about $350 for principal and interest. Most people do not have the cash you are in charge of.
Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND. If your credit is low, then get a preapproval from a loan broker instead of a bank. Real estate agents will then fall down in the street begging you to come to them.
All you need is to know this is how it's done. Let me know if I can help. You are going to do great.
Hi Mike-
I think you are finding some snobs over there. I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent. But heck if you have CASH??? And you TELL THEM you have cash? They should be running up to meet you. It sounds like you didn't tell them you had cash.
Now. Since you have cash, I am going to ask you how much you know about financing. Did you know a loan broker can get you a property for (give or take) $100,000? That implies you put down $25000. That's a pretty solid down payment. You'd have a loan of $75000, At 4% interest your payment would be (give or take) about $350 for principal and interest. Most people do not have the cash you are in charge of.
Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND. If your credit is low, then get a preapproval from a loan broker instead of a bank. Real estate agents will then fall down in the street begging you to come to them.
All you need is to know this is how it's done. Let me know if I can help. You are going to do great.
I checked my credit today. It's a 502. I'm not understanding why as i don't have any credit history at all. I'm still young. The only thing I see on there is a $50 medical bill from 3 years ago that I didn't even know about. I don't know anything about loans or financing. I've just been focusing on saving and budgeting. The properties that I want right now. (really for my mom) are listed at 38k and 44k. It's just really frustrating to have been sacrificing and saving for 5 years and still to be so far away. I know that lenders don't want to do 44k mortgage loans, but i'll take any kind of loan. I just need to get in a home. Paying off the remaining amount will be easy, considering what i would usually pay in rent will be going towards the loan, as well as what i would usually save. I have over 5 years of employment history at the same company, different positions because i've gotten promotions. Any idea how I could get a 8-14 k loan? or get someone to do a mortgage loan for that low?
@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.
@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.
Did not know this info.
How about trying a portfolio lender?
@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.
Did not know this info.
How about trying a portfolio lender?
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.
@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.
Did not know this info.
How about trying a portfolio lender?
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.
I'm trying to understand why someone with this amount of cash would buy MH.
@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.
Did not know this info.
How about trying a portfolio lender?
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.
I'm trying to understand why someone with this amount of cash would buy MH.
It's not a lot different than why an investor would buy a MH. I'm not as familiar with Raeford as I am with Samson county and south (Robeson, Columbus co.), but the thesis is the same. A decent MH can rent for $600-$800. There's one on realtor.com in Raeford for $875, but maybe not a $30K deal, maybe $50-60K. At $30K-$35K, an Owner Occupant can weigh the buy vs. rent and pretty clearly see that "buy" can be better. To me, it's a no-brainer IF a renter has the means to buy. Most don't. Clearly the OP has put himself in a good position to buy and knows it may be missing appliances and maybe missing an outside compressor. But good for him for the $$ paid. I hope he follows through and fulfills his goals.
BTW, I've seen this same thing (purchase cheap MH with cash) for about 20 years. Ironically, people/families buy cheap MH where they wouldn't qualify to rent. It's a hoot! Much more prevalent 8-10 years ago when a MH was basically free (cost of land value), but the philosophy still works.
Footnote: Keep in mind that these areas are in rural NC in counties that are not high on the totem pole (no pun intended, and no offense to the Lumbee) and all (Hoke, Sampson, Robeson, Columbus) designated Tier 1 counties.
Hi Mike-
I think you are finding some snobs over there. I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent. But heck if you have CASH??? And you TELL THEM you have cash? They should be running up to meet you. It sounds like you didn't tell them you had cash.
Now. Since you have cash, I am going to ask you how much you know about financing. Did you know a loan broker can get you a property for (give or take) $100,000? That implies you put down $25000. That's a pretty solid down payment. You'd have a loan of $75000, At 4% interest your payment would be (give or take) about $350 for principal and interest. Most people do not have the cash you are in charge of.
Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND. If your credit is low, then get a preapproval from a loan broker instead of a bank. Real estate agents will then fall down in the street begging you to come to them.
All you need is to know this is how it's done. Let me know if I can help. You are going to do great.
I checked my credit today. It's a 502. I'm not understanding why as i don't have any credit history at all. I'm still young. The only thing I see on there is a $50 medical bill from 3 years ago that I didn't even know about. I don't know anything about loans or financing. I've just been focusing on saving and budgeting. The properties that I want right now. (really for my mom) are listed at 38k and 44k. It's just really frustrating to have been sacrificing and saving for 5 years and still to be so far away. I know that lenders don't want to do 44k mortgage loans, but i'll take any kind of loan. I just need to get in a home. Paying off the remaining amount will be easy, considering what i would usually pay in rent will be going towards the loan, as well as what i would usually save. I have over 5 years of employment history at the same company, different positions because i've gotten promotions. Any idea how I could get a 8-14 k loan? or get someone to do a mortgage loan for that low?
Pay off that medical bill to make it go away. Anything like that on a credit report can affect it.
Hi Mike-
I think you are finding some snobs over there. I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent. But heck if you have CASH??? And you TELL THEM you have cash? They should be running up to meet you. It sounds like you didn't tell them you had cash.
Now. Since you have cash, I am going to ask you how much you know about financing. Did you know a loan broker can get you a property for (give or take) $100,000? That implies you put down $25000. That's a pretty solid down payment. You'd have a loan of $75000, At 4% interest your payment would be (give or take) about $350 for principal and interest. Most people do not have the cash you are in charge of.
Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND. If your credit is low, then get a preapproval from a loan broker instead of a bank. Real estate agents will then fall down in the street begging you to come to them.
All you need is to know this is how it's done. Let me know if I can help. You are going to do great.
I checked my credit today. It's a 502. I'm not understanding why as i don't have any credit history at all. I'm still young. The only thing I see on there is a $50 medical bill from 3 years ago that I didn't even know about. I don't know anything about loans or financing. I've just been focusing on saving and budgeting. The properties that I want right now. (really for my mom) are listed at 38k and 44k. It's just really frustrating to have been sacrificing and saving for 5 years and still to be so far away. I know that lenders don't want to do 44k mortgage loans, but i'll take any kind of loan. I just need to get in a home. Paying off the remaining amount will be easy, considering what i would usually pay in rent will be going towards the loan, as well as what i would usually save. I have over 5 years of employment history at the same company, different positions because i've gotten promotions. Any idea how I could get a 8-14 k loan? or get someone to do a mortgage loan for that low?
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.
#1 )HML will not lend for Owner Occupied property. At least not that I've ever heard of.
#2) The listing broker isn't entertaining a cash offer from the OP. An offer based on seller financing would have a lower probability of being accepted. REOs, for sure, won't consider it.
The first step is for the OP to talk to the bank where $30k is in his name. That bank may be able to provide a personal loan. You don't know until you ask.