What is the “sweet spot” for lots of greater Cincinnati home buyers looking for affordable housing? Affordable housing means something different to each buyer. However, it seems the “sweet spot” for buyers just entering the market are homes priced between $80,000-$90,000. Assuming you purchase a home for around $85,000 and put the minimum down payment and finance the mortgage through FHA the monthly payment (not including taxes and insurance) is around $615. Adding the extras to the payments winds about the same as monthly rent for an apartmetn. Further good news, the local real estate market has 344 listings in the four county area within the price range. The majority of the listings (239) are located around Hamilton County, followed by 60 in Butler, 30 in Clermont and 14 in Warren County. Buyer’s wants and needs may differ so to be realistic I added basic requirements of at least 3 bedrooms, 2 bathrooms with minimum 1 full bath and at least a 1 car garage. And the number of available homes drops dramatically to 18 in Butler, 6 in Clermont, 95 in Hamilton and 1 in Warren County. It’s important for any buyer to realize the number of homes available (condos not included) and line their ducks up prior to making a reasonable offer.
Most buyers need the seller to help with closing costs and need to consider the bottom line when making an offer. For example a cute property hits the market priced at $87,500 and you make an offer of $83,000 and ask the seller to pay $2500. in closing costs- the seller usually views that offer as $80,500. ($83,000 minus closing costs of $2500). Another buyer may come in with an offer of $82,000 and not request for the seller to cover any closing costs which allows the seller to net more $$$. Bottom line -make a smart offer especially if the property just hit the market.
Start house hunting now. If you don’t have a lender and need to talk to one-just let me know. sibcycline.com