Letters to Tracy

do I ever even stand a chance on your listings? Obviously, you have many of the best listings in the areas in which I'm looking, and I'd like to try to find a way to be more competitive.

Dear Tracy
I'm currently looking at getting FHA financing for any house that I make offers on. In theory, I could get a traditional loan if I found my "dream home," but for the most part, an FHA loan makes more sense for me because it gives me more flexibility to have money left over to do some work on whatever property I buy.

Given that, do I ever even stand a chance on your listings? Obviously, you have many of the best listings in the areas in which I'm looking, and I'd like to try to find a way to be more competitive. I loved the one I saw last week and was planning on coming back to see it again today in preparation for an offer, but I was quite disappointed when my agent relayed the details of your conversation (where he was told I probably couldn’t compete) with me.

Any advice or suggestions that you could give to me would be greatly appreciated. Thanks for your time!

Buyer

Dear Buyer
As much as I wish I were, I am not in charge of what the market does or which buyers make offers on my listings. I do my best to position my sellers’ properties (with their cooperation and consent) to the most appealing spot in the price and market range to attract the best and most likely buyers for my listings.
What happens after that is partly dependent upon which buyers are out there. If there is a buyer who has all cash and is willing to pay $520,000 for Property X which is listed for $469,000, what can you possibly do to compete? If there is a buyer who has 20% down and is willing to offer a high price with no appraisal contingency and has more cash to make up any shortfall, what can you do to compete? On the other hand, if you were the only buyer, willing to pay an attractive price with good terms, you would stand a really good chance to buy Property X with an FHA loan. Or if there were several other offers that also had FHA loans and couldn't qualify for more than, say, asking price.
Since I already have an offer and I know of at least one other coming in, I'm afraid that last scenario is not likely on this property. But it might be likely on some other property. Buying a home in a market like this is a frustrating process, I know. It takes persistence and an openness to properties that don't on the surface seem ideal, but as you get to know the market more, maybe you learn more about yourself and what is really important to you. And in the end, perhaps you find the place that offers the most value to you at a price you can afford.
I wish you the best of luck. I hope you do end up being able to purchase one of my listings.
Warm regards,
Tracy