My husband and I are first generation homebuyers and this would be the first home for us, so this whole process is all new territory. We currently live in Hutto and love the area and wanted to buy but most of the homes are going for over 300k here. We started the process with our realtor for finding a home recently but lately it’s been feeling really hopeless and I’m not realistically sure if we’ll actually be able to get anything in this market. It feels like homes in our price range are being bought the day they’re put up and put back up onto the market for prices way out of our range. Even with actively searching in areas well outside Austin (bastrop/Taylor/Buma/Elgin,Manor) we’re seeing homes being put up and taken off the market same day, and we’re being outbid by cash buyers offering 50-100k over asking price- which isn’t something we can afford because we don’t have any equity. We were looking into new builds but our realtor can’t seem to get a hold of any of the builders and apparently there are pretty long waitlists and she’s assuming they’re sold out of houses.
After finding this subreddit and reading around, from what I’m understanding new builds may also end up in a bidding war even if you get called on the waitlist which wasn’t something our realtor has mentioned.
We are looking to get some advice from the lovely people on this subreddit on what we should be looking out for and what we should be weary of, and realistically if we should just continue renting, or if we should try to still get on waitlists and purchase a home. I think when we started this journey our expectations were a little high because we didn’t realize just how many other people were looking to buy, but it’s starting to set in with what we’ve seen so far.
So there are a few questions we have if you’re willing to provide insight. We’ve tried doing our research as much as possible but the further down the rabbit hole we go the more we get hit with more questions about things we don’t understand.
Do first time homebuyers get any kind of bump on those waitlists or is it moreso just whoever is the highest bidder? Is it common courtesy to offer above asking price on homes for sale? We were pre approved for a loan from a lender for 250k on the Texas home sweet home loan at 4.5%, with credit scores of 756 and 748 and a household income of 83k. We’ve heard from some people this is a good deal and others that we could get better, but we’re just not sure if we should be talking to multiple lenders because we were told the credit checks could ruin our credit and decrease the loan amount. For those of you who have done the waitlist thing, is it normally a pretty long wait? And is the bidding war a case for most of those or just in certain areas?
We’re new to all of this so I’m sorry if any of these seem like silly questions, but there’s just so much information out there and we’re just not sure what we should be doing. Thank you so much for the help!