Cash Offers for Homes Increasing in Michigan’s Buyers Market
These days when it comes to buying the perfect home, there's a lot to think about. You should have a very good credit score, your bank should hopefully cover your mortgage, and be ready to put down some cash as a down payment.
I remember buying my first house in Lansing back in the late '90s. I purchased a cape cod very close to Everett High School. I remodeled that house and made extra cash for the purchase of my next home which is currently in the Okemos area.
These days are a bit different. Cash offers are being made on homes that are higher than the appraised value and that's keeping some buyers who are qualified out of the buyers market.
According to the Lansing State Journal:
This scenario is playing out with increasing frequency in Michigan's current housing market where low inventory and high demand have conspired to create bidding wars that leave prospective buyers without cash reserves on the outside looking in.
Seems like you hear all the time that it's a buyer's market. When a couple or a family sees a home they really want, the offers start pouring in and it becomes a bidding war with others who want that same home.
The Lansing State Journal tells us:
"Say (a buyer) offers $200,000 and the house only appraises at $190,000, they will guarantee that they'll pay that $10,000 difference," said Beth L. Graham, a Greater Lansing-based appraiser.
All I can say is don't get so attached to a house where you end up paying thousands of dollars more because of several other offers you're competing with. There are many beautiful homes in Michigan to choose from. Take your time and make sure it's right for you and your budget.