[quote=CA renter]
The lower priced homes have always been the most contested because there are a greater number of people who can afford them.
Also, with 6% “seller concessions” on a $500K house ($30,000), and the $8,000 tax credit, with a 3.5% FHA loan, you get $38,000, while only having to pay $17,500 (the 3.5% downpayment), plus perhaps $5,000 in closing costs (someone correct me if my numbers are off too much). In other words, someone buying under these conditions is BEING PAID $15,500 to buy the house. All of it legal, from what I understand. It’s not just a free call option, the buyer is being paid a premium to take it!
[/quote]
Thanks, CAR. I was thinking that affordability was a factor for that competition in that price range.
