Who Will Buy My House??

Selling your house in this market is not a laughing matter, but just like a comedian, you need to know your audience to have a successful show (or - in this case - successful sale). Mortgage guidelines have changed significantly since the housing bubble came and went, and sellers need to know who is out there buying and where the money is coming from so that they can be competitive and get their properties sold.

 Below are a few fictional scenarios that represent some different types of buyers that we see in our area. All of these are assuming a straight 5% interest rate, a 30 year loan, and equal footing for all other conceivable variables. Obviously the numbers will vary for every individual situation - but this illustrates some general parameters regarding possible levels of purchasing power available to buyers in Anacortes.

 Keep in mind as you look at the data that the median annual household income in Anacortes according to the City of Anacortes website is currently just over $52,000 and, according to the Northwest MLS, the median average list price for homes in Anacortes as of this posting is $398,500. The median price for sold properties since March, 2009 in Anacortes is $296,000.

 The information below is what one excellent local mortgage banker recommended for each of these fictional buyers to maximize their purchasing power. Again, these numbers are general - individual circumstances can change things dramatically.

 Buyer A:
Annual Gross Income: $45,000
Monthly Fixed Expenses: $500
Savings: $5000
Credit History: Average
Suggested house price: $162,000
Notes: USDA Loan, zero down, use savings for closing costs.

 Buyer B:
Annual Gross Income: $65,000
Monthly Fixed Expenses: $1000
Savings: $50,000
Credit History: Poor
Suggested house price: $240,000
Notes: FHA loan, $50K down, seller pays closing costs.

Buyer C:
Annual Gross Income: $100,000
Monthly Fixed Expenses: $1500
Savings: $0
Credit History: Average
Suggested house price: $315,000
Notes: FHA loan, needs gift funds of 3.5%.

 Buyer D:
Annual Gross Income: $140,000
Monthly Fixed Expenses: $1500
Savings: $50,000
Credit History: Excellent
Suggested house price: $522,000
Notes: Seller pays closing costs, buyer pays mortgage insurance.

Buyer E:
Annual Gross Income: $200,000
Monthly fixed expenses: $2500
Savings: $200,000
Credit History: Excellent
Suggested house price: $810,000
Notes: Conventional financing, $190,000 down, $10,000 for closing costs.